October Fed rate hike odds fall after soft August core PCE, with gold and dollar reaction

Did Cooler PCE Just Kill the October Fed Rate Hike?

Not dead, but badly wounded. August core PCE rose just 0.2% on the month and 3.0% on the year, below the 3.3% forecast. Add the weakest consumer confidence since 2014, and markets now price an October hike at roughly a coin flip or less, down from about 71% a week ago.

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