Viewpoint: Inflation is unlikely to fall to a level sufficient for the Federal Reserve to cut interest rates this year

According to BlockBeats, on March 14th, several Wall Street economists stated that due to the complex calculation methods and trends in key areas behind the data, policy makers are unlikely to feel too relieved about these numbers. Stephen Juneau, an economist at Bank of America, stated in a report that "in short, the inflation process in 2025 did not start smoothly, and our forecast for personal consumption expenditure price index (PCE) inflation further confirms our view that inflation is unlikely to fall to a level that would make the Federal Reserve cut interest rates this year, especially if policy changes push up inflation. Unless there is a significant weakening in economic activity data, we believe that the policy interest rate will remain unchanged until the end of the year Although the Federal Reserve also focuses on CPI and PPI, it believes that the final say on inflation belongs to the PCE price index. Most economists believe that the latest PCE data to be released later this month will show that the year-on-year inflation rate will remain stable at best at 2.6%, and may even slightly rise, further away from the Federal Reserve's 2% target. (Golden Ten)