US PCE Price Index is forecast to reach 0.4%, what can support further Fed rate hikes
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Stocks drop to a new monthly low as the economy faces low growth and more monetary pressure. On the other hand, the price of Gold continues to move within February’s previously formed trend. The US released its latest Quarterly Gross Domestic Product figure yesterday, triggering increased volatility. The GDP figure showed 2.7%, lower than the expected 2.9% but still higher than the last 2 quarters. The figure also confirms the US is not in a recession.
Today’s investors will fix their eyes on the Core PCE Price Index, which the Fed closely watches
However, the economic growth is still lower than previously thought, but the Federal Reserve is still likely to stick to its hawkish stance. The issue for the stock market is that companies are now under pressure from poor growth and high-interest rates. Today’s investors will fix their eyes on the Core PCE Price Index, which the Fed closely watches. The PCE Price Index is expected to rise from 0.3% to 0.4%. This would take the index to its highest point since October. Most economists believe a figure of 0.4% above will further support more rate hikes.
