In the Asian session on Monday (April 3), the U.S. dollar index rose, with the latest price of the U.S. dollar at 102.83, an increase of 0.23%. The core PCE price index in the United States recorded a monthly rate of 0.3% in February, which was lower than market expectations, which may indicate that the Federal Reserve is starting to make more progress in fighting high inflation. The annual rate of the core PCE price index in the United States also recorded a good performance in February, but whether the Fed can insist on raising interest rates again is far from certain.
The Fed’s goal has always been to bring inflation back down to its 2% target without causing a severe economic reaction. While today’s PCE data has some in the market thinking the Fed may stop raising interest rates, if inflation remains high, the Fed is expected to have to keep raising rates, even at the risk of causing a recession. In fact, the vast majority of economists believe a recession is imminent.
