BlockBeats News, August 26th. The US PCE Price Index has been released, which is the Fed's preferred inflation indicator. The PCE inflation rate is 3.7%, unchanged from June. Excluding the volatile food and energy categories, the core PCE inflation rate is 3.3%, also unchanged from June. Since this report incorporates previously released inflation data, PCE data usually align closely with investor expectations. However, as the Fed grapples with inflation concerns, this report further clarifies the inflation situation, with Fed Chair Powell set to deliver a key speech on Friday. US CPI data in July brought some positive news: core CPI eased to a relatively moderate 2.5%. However, the PCE inflation rate has different category weights, leading to consistently stronger performance.

Currently, there remains much uncertainty about how Powell views the inflation challenge he has inherited. He has not included his own economic projections in the quarterly released "dot plot," which summarizes Fed officials' outlook on the economy and interest rates. At the same time, he has not indicated whether he might support rate hikes at future meetings, a question that has caused internal divisions among Fed officials. (Golden Finance)