Viewpoint: Inflation is unlikely to fall to a level sufficient for the Federal Reserve to cut interest rates this year
ChainCatcher news, according to Jin10 data reports, multiple Wall Street economists have stated that policymakers are unlikely to feel overly reassured by these numbers due to the complex calculations behind the data and trends in key areas.Bank of America economist Stephen Juneau stated in a report, "In short, the inflation process for 2025 is off to a rocky start, and our forecast for the Personal Consumption Expenditures (PCE) inflation further confirms our view that inflation is unlikely to fall to a level that would prompt the Federal Reserve to cut rates this year, especially in the context of policy changes pushing inflation higher. Unless economic activity data weakens significantly, we believe the policy rate will remain unchanged by the end of the year."Although the Federal Reserve also pays attention to CPI and PPI, it believes that the final say on inflation belongs to the PCE price index. Most economists expect that the latest PCE data, to be released later this month, will show that the year-on-year inflation rate is at best stable at 2.6%, and may even rise slightly, further distancing itself from the Federal Reserve's 2% target.
