🚨 September Rate Cut Odds Plunge After Hot PCE Inflation Print

📢 The latest PCE inflation data has shifted market expectations in a big way.

🔹 CME FedWatch now shows just a 39.2% chance of a 25bps rate cut in September — down from 63.7% yesterday.

🔹 60.8% odds now favor the Fed holding rates steady yet again.

🔹 June PCE YoY: 2.6% (vs. 2.5% expected)

🔹 Core PCE YoY: 2.8% (vs. 2.7% expected)

🔹 Both monthly PCE & Core PCE came in at 0.3% — matching forecasts.

🏛 This marks the second consecutive monthly rise in inflation, with May data also revised higher. The timing couldn’t be more critical, coming just a day after the FOMC held rates steady for the fifth straight meeting.

📊 With inflation remaining sticky and data consistently surprising to the upside, the Fed’s path forward just became more uncertain — and the market knows it.

🔍 All eyes on the next FOMC as the tug-of-war between inflation and rate cut hopes intensifies.

#FederalReserve #InterestRates #PCE #FOMC #Macroeconomics

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