US: Core PCE deflator may gain some attention - BNZ

Kymberly Martin, Senior Market Strategist at BNZ, suggests that the release of the US core PCE deflator may gain some attention in today’s session.

Key Quotes

“This is the Fed’s preferred inflation measure. The core PCE deflator is clearly on an uptrend since it bottomed at 1.3% mid last year. But at 1.7%, it does not yet provide an impediment to the Fed’s proposed gradualist approach to tightening. A push up in the direction of 2.0% in coming months, however, might get the market to further re-think the medium-term path for the Fed funds rate.”