August PCE Inflation Softens, Reducing October Fed Rate Hike Expectations and Supporting Risk Assets
US August PCE inflation data came in softer than expectations, materially reducing market-implied probability of a Federal Reserve rate hike at the October FOMC meeting.
Key points
- US August PCE inflation data came in softer than expectations, materially reducing market-implied probability of a Federal Reserve rate hike
- The softer PCE reading extends the narrative of progress toward the Fed’s 2% inflation target, supporting the view that the tightening cycle
- Lower October hike expectations improve the risk-on environment for equities and credit, providing near-term relief to valuation multiples i
How do you see this playing out for markets? Discuss below.
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🇺🇸 United States Stocks Fed Policy fed fomc inflation cpi americas interest-rates