According to BlockBeats news, on September 27, many forecasters believe that the monthly rate of the core PCE price index in the United States in August will be lower than 0.2%. A modest reading of 0.1% would likely push the annual 12-month core PCE rate above the Fed’s 2% target, which is around 2.3%.
But JPMorgan economists say annualized inflation over the past three months will be around 1.8%-1.9%, which could allow the Fed to cut interest rates by another 50 basis points in November. If there are no surprises in today’s PCE data, the September non-farm payrolls report a week later will provide a clearer signal, JPMorgan wrote. (Golden Ten)