Personal Consumption Expenditures (PCE) is a broad price index for the United States economy that covers all goods and services consumed by households. The Federal Reserve prefers PCE over CPI as its primary inflation gauge.
Why FX traders watch it
Because the Fed targets 2% PCE inflation, surprises in this release can directly reprice Federal Funds rate expectations and drive significant moves in the usd. It is typically released as part of the monthly Personal Income and Outlays report.
How to interpret the data
PCE above 2% (year-on-year) signals the Fed may need to hold rates higher for longer, supporting the usd. A rapid decline toward or below 2% increases the likelihood of rate cuts, which is usd-negative.
Optional upper bound. Defaults to the current date.
api_key
CONDITIONAL
string
Required for non-USD announcement requests. USD announcement requests are public without an API key.
Example Usage
To retrieve PCE Price Index data for USD from 2023:
GET https://fxmacrodata.com/api/v1/announcements/usd/pce?start_date=2023-01-01&end_date=2023-12-31
Frequently Asked Questions
Why does the Fed prefer PCE over CPI?
PCE covers a broader range of expenditures, adjusts weights dynamically as consumers substitute goods, and tends to run slightly below CPI—making it a more stable policy anchor.