Wall Street is preparing for the release of the Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred measure of inflation.
The data point is widely viewed as the most critical input for policymakers as they assess the trajectory of price stability and the appropriate path for interest rates.
Traders are closely monitoring the core PCE figure, which excludes volatile food and energy costs, as it has remained a key benchmark for the Fed’s 2% target.
The PCE report is expected to provide clarity on whether inflationary pressures are continuing to moderate or if sticky components are emerging.
Traders are closely monitoring the core PCE figure, which excludes volatile food and energy costs, as it has remained a key benchmark for the Fed’s 2% target.
Any deviation from consensus estimates could trigger significant repricing in Treasury yields and equity markets.
In parallel, Brazil’s Central Bank is publishing its Monetary Policy Report (RPM), updating projections for inflation, economic activity, and the interest rate trajectory.