Market moves quickly: US August core PCE year-over-year rose 3%, slightly down from the previous month, hitting the lowest level since February and below the market expectation of 3.3%.
The CME FedWatch rate-hike probability has sharply fallen from yesterday’s 70% to 37%. What looked like a done deal for a rate hike yesterday now faces new variables.🤔
The issue is that US 10-year Treasury yields are still hovering around 5.3%, and oil prices remain near 98. This is a tricky situation—please remember that core PCE excludes food and energy, and the market still has serious concerns about the outlook ahead.
The CME FedWatch rate-hike probability has sharply fallen from yesterday’s 70% to 37%. What looked like a done deal for a rate hike yesterday now faces new variables.🤔
The issue is that US 10-year Treasury yields are still hovering around 5.3%, and oil prices remain near 98. This is a tricky situation—please remember that core PCE excludes food and energy, and the market still has serious concerns about the outlook ahead.
