Morgan Stanley Wealth Management: Latest PCE Data Fails to Shift Fed Rate Hike Expectations

The core Personal Consumption Expenditures (PCE) price index for July rose 0.2% month-over-month and 3.3% year-over-year, aligning with market expectations. Ellen Zentner, Chief Economic Strategist at Morgan Stanley Wealth Management, noted that while the slight upward trend in inflation and robust economic performance are not ideal for investors or the Federal Reserve, the data is insufficient to alter the policy outlook for the upcoming September Federal Open Market Committee (FOMC) meeting.