WS #15142
The US Core PCE inflation index came in below consensus forecasts, providing the clearest evidence yet that price pressures are cooling. This data has effectively neutralized the market's fear of an aggressive October rate hike, leading to a broad-based rally in equities and a decline in the US dollar. The finding reinforces the Federal Reserve's dovish stance, supporting growth-oriented assets and reducing the cost of capital for highly valued tech stocks.
US Inflation and Fed Policy
The US Core PCE inflation index came in below consensus forecasts, providing the clearest evidence yet that price pressures are cooling. This data has effectively neutralized the market's fear of an aggressive October rate hike, leading to a broad-based rally in equities and a decline in the US dollar. The finding reinforces the Federal Reserve's dovish stance, supporting growth-oriented assets and reducing the cost of capital for highly valued tech stocks.