Wall Street Pins Hopes On Friday's Crucial Fed Inflation Report: Miracle Needed To Shift Narrative
PCE price index release on Friday will be crucial for market recovery from recent sell-off. However, the outlook is not reassuring as inflation is expected to exceed Fed's 2% target. Fed's revised inflation projections and hawkish language suggest cautious approach to rate cuts. Friday's PCE report could sway market sentiment. Bank of America projects a slight increase in Core PCE, but economist Aditya Bhave believes there is no significant reacceleration in inflation.