Previous Trading Days Events 28.06.2024

Last Fridays inflationrelated report showed that U.S. monthly inflation was unchanged in May. The flat reading in the personal consumption expenditures PCE price index last month followed an unrevised 0.3 gain in April. It was the first time in six months that PCE inflation was unchanged. 

Consumer spending rose marginally last month. Underlying prices advanced at the slowest pace in six months.

Traders raised their bets for a Fed rate cut in September.

This was a very Fedfriendly report that should keep the September rate cut in play, while at the same time increasing investor confidence that moderate economic growth can be maintained even as rates stay higher for longer, said Scott Anderson, chief U.S. economist at BMO Capital Markets. The sharp slowdown in core inflation is just what the doctor needed to see to keep the economy on the softlanding glidepath.

In the 12 months through May, the PCE price index increased 2.6 after advancing 2.7 in April. Last months inflation readings were in line with economists expectations.

The socalled core PCE price index was previously reported to have climbed 0.2 in April. Core inflation increased 2.6 on a yearonyear basis in May, the smallest advance since March 2021, after rising 2.8 in April.

The Fed tracks the PCE price measures for its inflation target. Monthly inflation readings of 0.2 over time are necessary to bring inflation back to target.

PCE services inflation excluding…