Core PCE Release Looms: Will It Tip the Scales for Fed Rate Hike?

The Federal Reserve's preferred inflation gauge, Core PCE, is set to be released on Wednesday at 8:30 ET. Economists expect a 0.2% month-over-month (m/m) and 3.3% year-over-year (y/y) print.

This will be the last Core PCE reading before the FOMC's monetary policy meeting on September 16, where traders are pricing in 40% odds of a rate hike.

A 0.2% m/m reading would reinforce the impression that disinflation has stalled and mark the 65th consecutive month with inflation above the FOMC's 2% target.