PCE came in softer than expected. Headline +0.3% MoM vs 0.4% expected. Core held at +0.2%. Consumer spending still running hot at +0.9%.
October hike odds dropped from 51.5% to ~41.5% after the print.
Market's reading this as dovish. Fed's got less reason to tighten if inflation's cooling while spending stays strong. Not saying we're out of the woods, but this buys some breathing room.
October hike odds dropped from 51.5% to ~41.5% after the print.
Market's reading this as dovish. Fed's got less reason to tighten if inflation's cooling while spending stays strong. Not saying we're out of the woods, but this buys some breathing room.
