๐ US Economic Data: Inflation Still High, GDP Remains Strong โ Is the Fed Unlikely to Cut Interest Rates?
โข PCE (Fed's preferred inflation measure): 2.7% ๐ | Expected: 2.7% | Previous: 2.6%
โข Core PCE (Excluding energy & food): 2.9% ๐ | Expected: 2.9% | Previous: 2.9%
๐ The data shows inflation is not decreasing ๐ฅ, remaining high around 3%.
๐ Meanwhile, US GDP continues to grow strongly ๐, proving the economy is still very "resilient".
โ ๏ธ This means:
โข The Fed will have little reason to cut interest rates soon ๐ต.
โข The "higher for longer" monetary policy may continue, aimed at keeping inflation at the 2% target.
๐ก Market Impact:
โข Short-term sentiment is slightly negative ๐ due to reduced expectations of interest rate cuts.
โข However, if the inflation trend continues to gradually decrease, the Fed will still ease โ just more slowly than expected.
๐ฅ Conclusion: High inflation + Strong GDP = Fed cautious, the market needs to prepare for a scenario of high interest rates lasting longer.
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