The latest Personal Consumption Expenditures (PCE) data released Friday morning showed a reading of 2.6%, igniting investor optimism for a near-term Federal Reserve rate cut. Michael Green, Chief Strategist at Simplify Asset Management, joins to discuss the economic outlook in light of this latest report.

Green highlights that the PCE data revealed "one of the fastest slowdowns in inflation" since 1972. However, he cautions that if this disinflation trend persists, the economy could potentially face "some areas of deflation going forward." Nevertheless, Green suggests this print still offers "a reasonable chance" for a near-term rate cut.

Regarding the timing of a potential rate cut, Green believes it could materialize as soon as July. He states, "We could very well see a very positive inflation print coming in next month that might open the door for those Fed rate cuts."

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This post was written by Angel Smith