The latest Personal Consumption Expenditures (PCE) inflation data was released, showing both month-on-month and year-on-year changes. Headline PCE stood at 4.1% year-over-year and core PCE at 3.4%, both significantly above the Fed’s 2% target. This release is closely monitored by markets as PCE is the Federal Reserve’s preferred inflation gauge and could influence future monetary policy decisions. Current market pricing suggests a cautious outlook on the Fed’s interest rate decisions from July to October, reflecting persistent inflation concerns that may decrease the likelihood of rate cuts.
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