Economy Shows Underlying Strength While Avoiding Overheating; Supports Case for Fed Rate Cut

• Core PCE data was hotter than expected, but employment sub-index was slightly lower than forecast

• Economy seems to be performing well without spurring higher inflation, supporting case for Fed rate cut

• Jobs report on Friday payrolls number may not move needle, but elevated wage growth (average hourly earnings) could make Fed worry about inflation

• With other central banks assessing rate cuts, period of "synchronized" cuts could occur across regions

• Expert suggests data still points to Fed rate cut by end of Q2