‼️#Federal interest rate expectations JUMP after PCE inflation data.

There is now an 87% chance of a 25 bps rate hike at the July meeting.

Futures see a 39% chance of at least TWO more hikes by October.

Markets are now pricing-in a 5% chance of THREE more hikes in 2023.

Interest rate expectations are RISING after the release of PCE inflation data this morning.

But why?

Core #PCE inflation, the Fed's preferred inflation metric, is now UNCHANGED since December 2022.

Core PCE inflation is now at 4.6% and still a major problem for the #FederalReserve .

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