Fed Rate Cut Bets Unwavered Despite PCE Inflation Dip

The Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve's preferred inflation gauge, dropped to 2.5% in January, down from 2.6% in December. The core PCE index, which excludes food and energy, also fell to 2.6%. Despite the slight decrease, traders continue to bet on a Fed rate cut in June, with a higher probability of a second cut in September.

Futures traders maintain their stance on a potential rate cut, as the data shows a slight decrease in inflation. The PCE data release has not deterred traders from their expectations of a rate cut in June, with the probability of a second cut in September remaining higher than no rate cut at all.

The Personal Consumption Expenditures (PCE) Price Index is a key indicator for the Federal Reserve in determining monetary policy. The slight decrease in the index has not changed traders' expectations for a rate cut in June, with a higher probability of a second cut in September.

The PCE data release has not significantly impacted traders' expectations for a Fed rate cut in June. Despite the slight decrease in the inflation gauge, traders continue to bet on a rate cut, with a higher probability of a second cut in September.