According to BlockBeats, the Federal Reserve is set to announce its interest rate decision next Thursday, followed by a monetary policy press conference by Fed Chair Jerome Powell. Additionally, the latest non-farm payroll data will be released on Friday, which could be crucial in determining whether the Fed will proceed with a rate cut in September as anticipated. Recent statements from the Fed indicate growing confidence in achieving its inflation targets. The market largely believes that the Fed is unlikely to announce any policy changes at next week's meeting. Earlier, some speculated about the possibility of a rate cut, but this likelihood has diminished following better-than-expected second-quarter GDP data from the United States.
The U.S. Bureau of Economic Analysis reported that the Personal Consumption Expenditures (PCE) price index for June rose by only 0.1% month-over-month and 2.5% year-over-year. The core PCE price index, which excludes volatile food and energy prices, increased by 0.2% month-over-month, slightly above the market forecast of 0.1%. With the July non-farm payroll data set to be released on Friday, Powell is unlikely to specify when the Fed will begin its easing cycle or commit to a rate cut in advance. High Frequency Economics Chief U.S. Economist Rubeela Farooqi stated, "From the Fed's perspective, we believe the data shows sufficient progress, with inflation and labor market conditions allowing policymakers to keep the door open for a rate cut at the September FOMC meeting."
