Inflation Reading Unlikely To Change Expected Fed Decision
PCE inflation, due Friday, is important but unlikely to change the outcome of next week’s Fed meeting, while “each monthly reading and where the progress is being made, or not, will matter,” as policymakers consider the path of interest rates in the U.S., AmeriVet’s Gregory Faranello says in a report. December core PCE reading is expected to slow to 3% from 3.2%, remaining far from the Fed’s 2% target, according to economists surveyed by The Wall Street Journal. The Fed is expected to keep rates unchanged next week and start cutting them in March or May. Meanwhile, Treasury yields decline today, with the 10-year at 4.089%.
By: Paulo Trevisani