Federal Reserve Chairman Warsh stated that to achieve the 2% inflation target, he considers a broader range of inflation data than just PCE data. PCE data is our benchmark, and we will continue to adhere to it. It's important to note that the Fed's preferred inflation gauge—the June core PCE data—will be released at 8:30 PM Beijing time on Thursday. Committee members typically don't wait for the official data to determine the approximate inflation rate; they already have estimates based on existing information. The FOMC itself relies on these internal analyses for its discussions. Currently, the market expects core PCE to rise 3.30% year-on-year, lower than the previous 3.40%. If the data falls below expectations, it will reduce the urgency for the Fed to raise interest rates to control inflation; if the data exceeds expectations, it will strengthen expectations for further rate hikes.
