👀PCE lower than expected, December interest rate cut is inevitable☂️
Results of the rate hike cycle: Core PCE gradually declining, inflationary pressure easing.
Signs of economic slowdown: Consumer confidence decreasing, demand weakening, companies facing overcapacity and inventory backlog.
PCE decline: Companies lowering prices to stimulate consumption, price increases slowing down.
Inflationary pressure easing: High interest rates may exacerbate stagflation risks.
Federal Reserve policy space: Low PCE provides a reason for interest rate cuts, releasing market liquidity to support economic recovery.
Conclusion: PCE lower than expected, interest rate cuts become an inevitable choice.