Wall Street indexes rose Wednesday after a key inflation measure fell short of expectations, fueling speculation that the Federal Reserve could delay an interest rate increase. The personal consumption expenditures price index came in at 3.4% annually in August, below the projected 3.7%, easing concerns about aggressive monetary tightening. Traders now assign roughly a 35% probability to a rate hike in October, down from earlier estimates near 45%, as markets react to the softer economic data. The shift reflects growing optimism that inflation may be cooling faster than anticipated.
Traders see an about 35% chance of an October rate hike, down from about 45% following White House pressureGood economic news boosted Wall Street’s main indexes on Wednesday, as a softer-than-anticipated inflation reading buoyed hopes that the Federal Reserve might not hike rates as soon as next month.A commerce department report showed the personal consumption expenditures (PCE) price index stood at 3.4% on an annual basis in August against estimates of 3.7%, per economists polled by Reuters. Continue reading...
