The U.S. core PCE annual rate for August is expected to record 2.9%, with attention on inflation impact

ChainCatcher news, according to Jinshi reports, Capital.com analyst Kyle Rodda expects the U.S. core PCE year-on-year rate for August to be recorded at 2.9%, indicating that inflation remains on a stable track, and is above the Federal Reserve's 2% target. The market is closely watching the impact of service and goods inflation on the data, with service inflation being a key driver of price increases, while goods inflation shows signs of recovery. The interest rate market believes that the probability of the Federal Reserve cutting rates in November is 90%, and 75% in December. If the core PCE year-on-year rate rises above 3%, it may raise doubts among investors about the Federal Reserve's ability to cut rates.