WS #15133
The US Bureau of Economic Analysis released final Q2 GDP and August PCE data showing Core PCE inflation cooling to 3.0% YoY, well below the 3.7% consensus. Combined with steady private sector job growth (+90k) and resilient consumer spending, this data suggests the Federal Reserve's recent rate hike was likely the final move of this cycle. The yield curve is expected to steepen as long-end yields retreat from their 2002 highs, providing a tailwind for growth stocks and reducing borrowing costs for rate-sensitive sectors.
US Inflation & Fed Policy Pivot
The US Bureau of Economic Analysis released final Q2 GDP and August PCE data showing Core PCE inflation cooling to 3.0% YoY, well below the 3.7% consensus. Combined with steady private sector job growth (+90k) and resilient consumer spending, this data suggests the Federal Reserve's recent rate hike was likely the final move of this cycle. The yield curve is expected to steepen as long-end yields retreat from their 2002 highs, providing a tailwind for growth stocks and reducing borrowing costs for rate-sensitive sectors.