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Fed’s preferred inflation gauge rises to 3.6% in September
US September PCE inflation rose to 3.6% year over year. Core PCE rose to 3.1% year over year and 0.3% month over month. CPI, PPI, and PCE have all re-accelerated, indicating broad inflation pressure and raising the likelihood of tighter Federal Reserve policy into year-end.
Market impact
- Policy expectations: Odds of a December rate hike increase as inflation trends higher.
- Rates and dollar: Upward pressure on Treasury yields and the US dollar.
- Risk assets: Headwinds for equities and cryptocurrencies, with elevated volatility risk.
- Fed focus: Inflation trajectory and upcoming labor data will shape the December decision.
Authors credited by the source: thekobeissiletter
Published by Holder based on an external source.
