Will the FED not cut interest rates until 2025? What Does PCE Data Mean? Famous CEO Announced!

FedWhile it remains a matter of curiosity when the interest rate will be cut, the PCE data, which the FED follows as a leading data on inflation, was announced today.

exceeded expectations P.C.E. data is considered as a signal that interest rate cuts may be delayed, one of the world’s largest asset management companies deVere CEO Nigel Green He warned that there was a high chance the Fed would not cut interest rates this year.

Evaluating the announced PCE data, deVere CEO stated that interest rate cuts may be delayed until 2025 and said:

“These data are another setback in the FED’s fight against inflation. The latest figures from PCE, the Federal Reserve’s preferred inflation measure, highlight that inflation is continuing at higher than expected levels despite higher interest rates used to reduce inflation.

We are now revising our interest rate cut forecast, with the US economy remaining consistently strong and defying expectations, the strong labor market, rising PPI and CPI, and other recent data, as well as the PCE data released today.

We think U.S. central bank officials will need several months in a row of data showing that inflation is actually moving toward the 2% target before they consider changing their monetary policy stance.

As a result, we estimate that the FED will refrain from reducing interest rates until 2025. “

DeVere CEO finally told investors that they should adjust themselves in case there is no interest rate cut until 2025 and “Given the likelihood that the Federal Reserve will not lower interest rates this year, investors may need to adjust their investment portfolios for a prolonged period of high interest rates to manage risks and take advantage of potential opportunities.” said.

No rate cuts by Fed until 2025? https://t.co/hntFXwxFrp @NEWSMAX

— deVere Group (@deveregroup) April 26, 2024

*This is not investment advice.