Core PCE Data Release Could Alter Federal Reserve's December Rate Cut Expectations

The upcoming release of the U.S. core Personal Consumption Expenditures (PCE) index on Wednesday, November 27, 2024, is drawing significant attention from analysts and investors. As a key inflation measure, the core PCE index is expected to show an uptick, potentially influencing the Federal Reserve's stance on interest rates.Chris Weston, an analyst at Pepperstone, highlighted that gold futures saw a sustained sell-off in Asian markets on Monday, following a robust 5.4% gain last week. This decline, he noted, likely reflects investor position adjustments ahead of critical U.S. economic data releases, including Tuesday's consumer confidence report.Weston further explained that a rise in the core PCE index could temper expectations of a December rate cut. The index, which excludes volatile food and energy prices, is a vital indicator of inflation trends closely monitored by the Federal Reserve. An increase may signal persistent inflationary pressures, suggesting that the Fed could maintain its current interest rate levels to stabilize the economy.Market participants are advised to monitor these developments closely, as the core PCE data has the potential to drive significant market movements and shape the trajectory of U.S. monetary policy, according to Jinshi Data.