JunLi Henderson: U.S. Core Inflation Stubbornness May Affect Interest Rate Adjustment Process
Dan Siluk, the Head of Global Short Duration and Liquidity and Portfolio Manager at JunLi Henderson Investment, stated that the resilience of core inflation remaining persistently above the Federal Reserve's target range suggests that market expectations for a shift in monetary policy may need to be recalibrated, which could affect the timing of interest rate adjustments. As the market gradually digests this data, the focus will shift to the tariff decision date on April 2, which is seen as the next major event risk. Nevertheless, analysts expect that this event will raise more unresolved questions rather than clarify the situation, adding another layer of uncertainty to the already complex economic landscape. The latest Personal Consumption Expenditures (PCE) report released in the U.S. presents mixed signals: the overall data met market expectations, but the core indicators showed a slight yet significant upside surprise, with both month-on-month and year-on-year growth exceeding estimates by 0.1 percentage points. This unexpected upward trend is further highlighted by the core PCE reaching the second-highest record in the past 24 months, revealing the ongoing reality of inflationary pressures
According to the Zhitong Finance APP, Dan Siluk, the Global Short Duration and Liquidity Head and Portfolio Manager at JunLi Henderson Investment, stated that the resilience of core inflation remaining persistently above the Federal Reserve's target range suggests that market expectations for a shift in monetary policy may need to be recalibrated, which could affect the timing of interest rate adjustments. As the market gradually digests this data, the focus will shift to the tariff decision date on April 2, which is seen as the next major event risk. Even so, analysts expect that this event will raise more unresolved questions rather than clarify the situation, adding another layer of uncertainty to the already complex economic landscape.
The latest Personal Consumption Expenditures (PCE) report released by the United States presents mixed signals: the overall data met market expectations, but the core indicators showed a slight yet significant unexpected increase, with both month-on-month and year-on-year growth exceeding estimates by 0.1 percentage points. This unexpected upward trend is further highlighted by the core PCE reaching the second-highest record in the past 24 months, revealing the ongoing reality of inflationary pressures