US August PCE inflation falls to 3.4%, beating expectations and reducing October rate hike odds.
Macro & Markets ·
US August PCE inflation fell to 3.4%, below the 3.7% expectation, while core PCE declined to 3.0% versus the anticipated 3.3%. Prior month readings for both headline and core PCE were also revised lower by 30 basis points each. The softer inflation data has reduced odds of a rate increase in October.