1123 ET - August PCE inflation is already shaping up as a potentially dovish event, Citi economists Andrew Hollenhorst and Veronica Clark write. They observe that Fed officials increased their forecast for year-end annual PCE to 3.4% from 3.3% in their latest projection. However, revisions to the methodology are expected to shave 0.1 to 0.2 percentage point from the data due Sept. 30. The implication is either that revisions were not included in the new projections or "officials expect very strong (0.30%+MoM) readings in coming months." If the FOMC wants to stay on hold in October, "a softer revised PCE path can be part of the rationale," Hollenhorst and Clark say.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments