The US Bureau of Economic Analysis (BEA) announced that the US core Personal Consumption Expenditures (PCE) price index rose 0.2% month-over-month in August, falling short of market expectations (0.3% increase). Year-over-year, it rose 3.0%, also falling short of expectations (3.3% increase). The core PCE price index, which excludes volatile energy and food items, is considered a key indicator by the Federal Reserve (Fed) for assessing inflation. If the indicator exceeds expectations, hopes for a Fed rate cut may weaken, while if it falls below expectations, it could be interpreted as a sign of slowing inflation, increasing expectations for a rate cut. Generally, risk assets tend to rise when expectations of increased liquidity due to interest rate cuts grow.
