The post Tracking the Fed’s next steps: All eyes are on this Friday’s PCE print appeared on BitcoinEthereumNews.com.

Investors are preparing for a volatile week as the US prepares to release inflation data on Friday while markets digest new tariff threats from President Donald Trump and fiscal concerns surrounding America’s federal deficit.  The US Bureau of Economic Analysis is scheduled to release the latest Personal Consumption Expenditures (PCE) data on Friday at around 11 AM ET.  Analysts expect the headline PCE index to ease slightly to 2.2%, down from 2.3% in March, with the core PCE, which excludes food and energy, likely to witness little to no change. The Fed could use the data to look for signs of inflation moderation and weigh on interest rate cuts in its June meeting. Fed inflation policy data in focus According to data from the BEA, the Core PCE Price Index dropped to 2.6% in March from 3.0% in February. The metric has averaged 3.24% since 1960, only peaking at 10.22% in February 1975. Monthly forecasts point to a 0.1% increase in PCE, while personal income is expected to rise 0.3%, and personal spending is seen slowing to 0.2%, down sharply from 0.7% in March. The Cleveland Fed’s Nowcast model sees little deviation in core figures, although geopolitical tensions caused by Trump tariffs could cause a slight change in the prediction The outcome of Friday’s PCE report could influence the Federal Reserve’s next monetary policy steps. A softer print may give Fed Chair Jerome Powell more reason to cut borrowing rates next month, while an uptick could give the central bank more reason to wait.  Fed minutes from the last meeting, due Wednesday, may give investors several insights into policymakers’ deliberations, particularly on tariff risks and inflation persistence. The Fed insists that it requires more evidence before considering easing rates. On Friday, President Trump proposed raising tariffs on EU goods to…

---

Filed under: News - @ May 26, 2025 2:23 pm