US August core PCE
3.0% y/y vs 3.3% expected Prior 3.3%
+0.2% vs +0.3% expected Prior +0.2%
Headline
y/y 3.4% vs 3.7% expected (3.7% prior)
m/m +0.3% vs +0.4% expected (+0.2% prior)
Personal income +0.2% vs +0.4% expected. Prior month +0.4%
Personal spending +0.9% vs +0.8% expected. Prior month +0.2%
This is a big sigh of relief for the Federal Reserve and takes away the pressure to hike rates in October.
The US dollar is falling across the board and Treasury yields are 4-5 bps lower across the curve. We’re seeing bids in stocks and gold as well.
October rate hike odds are down to 34%. They were 64% at the start of the week.