Inflation Tamed: Analysts Believe Fed’s Job Is Done — Most Predict June Rate Cut

Annual inflation measures are easing and, on Thursday, the Federal Reserve’s favored measure — the Personal Consumption Expenditures (PCE) index — was released, showing a drop to 2.4% in January, matching expectations and edging towards the Fed’s 2% target.

Core PCE inflation, stripping out food and energy costs, eased to 2.8% as expected, but monthly measures rose by more than expected.

While personal income gathered pace, rising 1% — well above the 0.3% climb seen in December and higher than the 0.4% rise expected — most analysts put this down to the one-off impact of a rise in social security payments.

The data provoked a mixed response from analysts, but most were optimistic that the Fed had won the battle against inflation and that it would soon be back at the central bank’s target.

Also Read: Fed’s Go-To Inflation Gauge Hits The Mark, Personal Income Surges In January Fed’s Preferred Inflation Gauge Matches Expectations

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Joseph Brusuelas, chief economist at RSM US, said the Fed would remain on track for a June rate cut.

“We were not part of the …

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