China, U.S. Establish Trade Council; U.S. Core PCE Hits 3.4% High Since October 2023

According to China's Commerce Ministry on June 25, China and the U.S. agreed to establish a bilateral trade council under the framework of their economic negotiations, with plans to discuss reciprocal tariff reductions and collaboration initiatives.

Meanwhile, the U.S. Commerce Department reported that core PCE inflation reached 3.4% year-over-year in May, marking the highest level since October 2023 and meeting market expectations. Federal Reserve Vice Chair John Williams stated that inflation pressures are expected to ease, pushing the timeline for reaching the 2% inflation target to 2028.