August PCE Inflation Rises Again – Is the Fed’s Rate Cut Plan in Jeopardy?
The PCE price index rose 2.7% in August, the fastest annual pace since February and above the Fed’s 2% target for the 54th straight month. Core PCE held at 2.9%. Markets reacted calmly, with U.S. stock futures edging higher and bond yields steady. Traders still expect another Fed rate cut in October.