ME News reports that on July 30 (UTC+8), Federal Reserve Chair Powell stated that to achieve the 2% inflation target, the range of inflation data I refer to is broader than just PCE data. PCE data remains our preferred indicator, and we will continue to rely on it. It’s important to note that the Fed’s preferred inflation metric—the June core PCE data—will be released at 20:30 Beijing time on Thursday. Committee members typically do not wait for public data to gauge the general level of inflation; instead, they already have estimates prepared by staff based on available information. The FOMC conducts its discussions precisely using these internal analyses. Currently, the market expects core PCE to rise 3.30% year-over-year, down from the prior reading of 3.40%. If the data comes in lower than expected, it would reduce the urgency for the Fed to raise rates to control inflation; if it exceeds expectations, it would strengthen expectations for further rate hikes. (Jin10) (Source: BlockBeats)
Fed officials likely already track inflation before the PCE release
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Summary
Fed updates from MetaEra on July 30 indicate that Fed officials are already monitoring inflation data ahead of the PCE release. Chair Walsh stated that the Fed employs a broader set of metrics beyond core PCE, its primary inflation measure. Core PCE is scheduled for release at 20:30 Beijing time on Thursday, but FOMC members often rely on internal estimates. Market forecasts anticipate an annual increase of 3.30%, down from 3.40%. A weaker reading could alleviate pressure for further rate hikes, while a stronger figure may prompt additional tightening.
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