US PCE data – “core inflation didn’t print low enough to prevent a January Fed pause”

Bank of Montreal found support for a Federal Reserve rate cut cycle pause in the PCE data released on Friday last week.

ICYMI, data and analysis links in here:

• Forexlive Americas FX news wrap: PCE inflation unexpectedly cools

BOM, meanwhile:

• On the inflation front Core-PCE came in … 0.115% unrounded, and the lowest since May
• the second lowest monthly gain over the last year
• Overall, it was a round of data that was consistent with the more benign inflation profile that appears to be emerging in Q4.
• However, core inflation didn’t print low enough to prevent a January Fed pause.

(bolding is mine)

This article was written by Eamonn Sheridan at www.forexlive.com.