Core PCE inflation rises to 3.4% making Fed hikes soon very likely

Core PCE inflation just got released and went up from 3.3% to 3.4% so certainly not going back to the Fed's target of 2%. Headline PCE inflation even hit 4.1%. Consumer spending also came in stronger than expected rising 0.7% for the month of May. Different firms like Citadel already expected hiking to start in September but even a hike at the July meeting is now possible combined with shrinking the Fed's balance which could push up bond yields. submitted by /u/ThinkBigger01 [link] [comments]