ChainThink reports that on March 13, the U.S. fourth-quarter real GDP growth rate was significantly revised down to 0.7%, from an initial estimate of 1.4%, well below the market expectation of 1.5%, indicating a clear slowdown in economic momentum. Following the data release, markets still anticipate the Fed could cut rates as early as September; however, uncertainties remain regarding rate cuts due to persistent inflation and rising oil prices driven by the Middle East situation.
Meanwhile, the U.S. PCE price index rose 0.3% month-over-month in January and increased to 2.8% year-over-year; the core PCE index, excluding food and energy, rose 0.4% month-over-month and climbed to 3.1% year-over-year, reaching its highest level in nearly two years. Core PCE has recorded a 0.4% month-over-month increase for two consecutive months, indicating that inflation remains persistent.
