How fast will the Fed cut rates? Investors have appetite for another 50 bps move, but that depends on the pace inflation falls. Core PCE will provide some clues. Live coverage.
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How Core PCE moves markets
The US economy is slowing, but not too fast – growth remains solid and the labor market is stable. So far, the Federal Reserve (Fed) is cutting interest rates only because inflation is down. The core Personal Consumption Expenditure (core PCE) will provide more clues about the pace of the falls.
Core PCE MoM is set to rise by 0.2% MoM in August, a repeat of July's data. While the figures lag the Consumer Price Index (CPI) report, the fact that the Fed watches them makes a difference.
The data is released at the end of a turbulent week that was dominated by massive Chinese stimulus that lifted markets. In addition, the Japanese Yen experienced rocky moves.
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