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      U.S. Inflation Data Reduces Likelihood of Federal Reserve Interest Rate Hike

      Recent data indicates a decrease in U.S. inflation, with the core Personal Consumption Expenditures (PCE) index falling to 3.0% year-over-year in August, compared to an expected 3.3%. The headline PCE also showed improvement, registering at 3.4%, lower than the forecast of 3.7%.

      In addition to the inflation figures, the U.S. Bureau of Economic Analysis revised the second quarter Gross Domestic Product (GDP) growth rate upward to 2.2%, a significant increase from the previous estimate of 1.5%.

      As a result of these developments, the market has adjusted its expectations regarding the Federal Reserve's monetary policy. Currently, there is a 65% probability of no interest rate hike in October, while the likelihood of a 25 basis point increase stands at 31%.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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