Previous Trading Days Events 29.03.2024

The latest inflation data, the personal consumption expenditures PCE price index figure, showed that U.S. prices moderated in February, with the cost of services outside housing and energy slowing significantly, keeping a June interest rate cut from the Federal Reserve on the table. the price index rose 0.3 last month

In addition, consumer spending rose by the most in just over a year last month.

Core services inflation is slowing and will likely continue throughout the year, said Jeffrey Roach, chief economist at LPL Financial in Charlotte, North Carolina. By the time the Fed meets in June, the data should be convincing enough for them to commence its rate normalisation process.

Data for January was revised higher to show the PCE price index climbing 0.4 instead of 0.3 as previously reported.

In the 12 months through February, PCE inflation advanced 2.5 after increasing 2.4 in January.

Though price pressures are subsiding, the pace has slowed from the first half of last year, and inflation remains above the U.S. central banks 2 target. Fed Chair Jerome Powell said on Friday that Februarys inflation data was more along the lines of what we want to see.

Policymakers anticipate three rate cuts this year. Financial markets expect the first rate reduction in June. Most U.S. financial markets were closed for the Good Friday holiday, with the exception of the foreign exchange market. The dollar slipped against a basket of…