Expectations for interest rate cuts are strengthening again! The Federal Reserve favors the "just right" inflation index: suggesting that inflation is not hot and the economy is not cold.

The Wise Finance APP learned that the Fed's favorite inflation indicator - the so-called "core personal consumption expenditure price index" (core PCE) - has been released. In July, both core PCE and overall PCE were in line with economists' expectations on a year-on-year basis, but slightly higher compared to the previous months, reaching the highest level since February of this year. However, the index remained stable on a month-on-month basis, matching expectations and the previous value, signaling stable inflation. Following the release of the latest PCE inflation data, market expectations for a Fed rate cut have increased, especially with a probability of more than 90% for a rate cut in September. Interest rate futures traders are increasing their bets on the Fed cutting rates twice this year by 25 basis points each time - with an additional rate cut expected in December.