- Uncertainty argues for caution in the last stages of inflation fight
- Policy should remain modestly restrictive until there is more confidence inflation will return to target.
- Expects upcoming PCE will show a further decline, the Fed has made a light of progress.
- The economy is in a good place.
- Will take a wait and see approach about our upcoming policy changes impact the economy.
The US PCE data will be released on Friday at 8:30 AM. Expectations are for:
- PCE MoM to rise by 0.3%
- PCE YoY to fall to 2.5% from 2.6% last month
- Core PCE MoM to rise by 0.3%
- Core PCE YoY to fall to 2.6% from 2.8% last month
