The Fed's Preferred Inflation Metric Came in Cooler Than Expected. Here's What That Means for Interest Rates This Year
The chances of rate hike at the Fed's next meeting just fell significantly.
Overview
Investors always have at least one eye on interest rates, but after the Fed hiked the Fed funds rate earlier this month, interest rates are back on center stage. At the same time, treasury yields have soared, lifting everything from mortgage rates to credit card APRs, adding to the pressure for investors.
Against that backdrop, investors hoping for some relief from higher interest rates got a gift on Wednesday as the Fed's preferred inflation gauge, the personal consumption expenditure (PCE) Index, came in cooler than expected for August.
Image source: Federal Reserve.
Details
Source
Originally published at www.fool.com.
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