Tradingkey – The U.S. Bureau of Economic Analysis (BEA) will release the April PCE inflation report on May 28, Eastern Time.
Since May, multiple economic data points have confirmed that inflation remains elevated, leading markets to even begin betting that the Federal Reserve will pivot toward interest rate hikes within the year. Consequently, U.S. Treasury yields strengthened, with the 30-year yield surging to 5.2% on May 20, reaching its highest level since 2007.
It should be noted that while CPI is a key inflation indicator for the market, the Federal Reserve focuses more on PCE inflation data. This has been its officially established inflation anchor since 2012, with a long-term policy goal of stabilizing the year-over-year PCE growth rate at 2%.
In its decision-making, the Federal Reserve particularly values core PCE, which excludes food and energy prices, believing it is less…
