‼️#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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