The central bank has now maintained its policy for one year since its last rate increase in July 2023.
The data shows a year-on-year increase of 2.5 percent in June, down from the 2.6 percent reported in May.
PCE is a favored measure of the Fed as it works to bring inflation back down to its target rate of 2 percent.
In its decision, the committee said it is seeking greater confidence that inflation is moving sustainably toward its goal, and will continue to assess “incoming data as it is available, the evolving outlook and the balance of risks.”
“We expect rate cuts in the second half of this year to support business-to-business demand, with manufacturing and industrial activity benefiting in 2025 and 2026,” said ITR Economics economist Lauren Saidel-Baker.
Saidel-Baker also told the Investing News Network with only two jobs reports before the September meeting, it would take a significant surprise to dissuade the Fed from making cuts.
As of 3:40 p.m. EDT on Wednesday, gold had climbed 1.28 percent from the market’s open to move above US$2,450 per ounce, and silver had climbed 1.26 percent in the same period to hit US$29 per ounce.
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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