BlockBeats News, March 14th, several Wall Street economists have expressed that policymakers are unlikely to be too reassured by these numbers due to the complex calculation method behind the data and trends in key areas.
Bank of America economist Stephen Juneau stated in a report, "In short, the inflation process in 2025 did not start smoothly. Our forecast for Personal Consumption Expenditures (PCE) inflation further confirms our view that inflation is unlikely to fall enough to warrant a rate cut by the Fed this year, especially in a policy environment that is pushing inflation higher. Unless economic activity data significantly weakens, we believe that policy rates will remain unchanged by the end of the year."
Although the Fed also monitors CPI and PPI, it believes that the final word on inflation belongs to the PCE Price Index. Most economists believe that the latest PCE data to be released later this month will show that the year-over-year inflation rate is at best stable at 2.6%, or may even slightly increase, further moving away from the Fed's 2% target. (Jinse)
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.