The Fed announces its next decision on October 28. September PCE, the inflation gauge the Fed targets, comes out on October 29.
HOW TO TRADE ECONOMIC DATA · 02 How to Trade Economic Data 02: Inflation, CPI, PPI and PCE Traders react to CPI first, then use PPI to estimate core PCE, the gauge the Fed actually targets. BY DORIAN ZTRADER.AI RESEARCH The Fed announces its next decision on October 28. September PCE, the inflation gauge the Fed targets, comes out on October 29. So the Fed votes one day before its own preferred number is published. How does anyone know what September core PCE looks like before BEA prints it? Traders build the entire scenario maps around these figures. So the numbers run in the following order: CPI landed on Wednesday. PPI lands Thursday morning. Therefore: We traders will take the right pieces from both above reports and we will form a core PCE estimate weeks ahead of the official release. Powell said it plainly in February 2025: you need to know “the translation from CPI to PCE.” Now th
Premium research continues below.
Unlock to read the full report, framework, and trade path.