PCE Data May Fuel Bets on Early Fed Rate Hike Under Warsh
Upcoming PCE inflation figures could bolster expectations for an early Federal Reserve rate hike, as new Chair Kevin Warsh conducts his first FOMC meeting on June 16.
The Personal Consumption Expenditures (PCE) price index, the Fed's preferred inflation gauge, is due for release ahead of the June 16 FOMC meeting. A hot reading could amplify calls for the central bank to tighten policy sooner than previously anticipated.
New Fed Chair Kevin Warsh will preside over his first rate-setting session. Market participants are closely watching for any shift in forward guidance, especially given his reputation as a hawkish policymaker.
The outcome of the meeting is likely to hinge on whether inflation data supports an accelerated timeline for rate normalization, adding to volatility in currency and fixed-income markets.
Source: FXStreet Forex News