US July PCE rose 3.7% year-on-year, higher than expected, while core PCE remained flat at 3.3%, showing no signs of cooling. Market expectations for a September rate hike by the Federal Reserve have risen to approximately 40%.
Data released by the U.S. Department of Commerce on Wednesday showed that the Personal Consumption Expenditures (PCE) price index rose 3.7% year-on-year in July, higher than market expectations of 3.6%, and increased 0.2% month-on-month, also exceeding expectations. Excluding food and energy, core PCE rose 3.3% year-on-year, flat with June, and increased 0.2% month-on-month. Following the data release, federal funds futures reflected that the probability of a September rate hike by the Federal Reserve rose to about 40%, up from about 36% before the data was announced.
Source:华尔街见闻 · Source Link
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