On May 30, the U.S. Department of Commerce will announce the U.S. April Core PCE Price Index year-on-year rate at 20:30 tonight, with an expected rate of 2.5%, compared to the previous value of 2.6%.
PCE corresponds to "Personal Consumption Expenditures" in Chinese; the Core PCE Price Index is a key indicator measuring inflation in private consumption in the United States, first introduced by the Bureau of Economic Analysis of the U.S. Department of Commerce and adopted by the Federal Open Market Committee (FOMC) of the Federal Reserve in 2002 as a primary inflation indicator. In January 2012, the Federal Reserve set a long-term inflation target of 2% for the Core PCE year-on-year rate, thereby announcing a clear inflation target. If the Core PCE year-on-year rate rises above 2%, the Federal Reserve will tighten monetary policy, which is favorable for the U.S. dollar. Announced value > predicted value = bullish for the U.S. dollar.
