Fed Rate Hike Expectations Rise as Inflation Gauge Hits 3.3%

The Federal Reserve's preferred inflation gauge rose in July, as expected, but it didn't deter expectations of a rate hike at the next Fed meeting.

According to data from the Department of Commerce, the core personal consumption expenditures price index gained 0.2% last month and clocked in at 3.3% for the year.

This is above analysts' forecasts, with some even predicting a hike sooner rather than later.

Cleveland Federal Reserve president Beth Hammack said that 'one 25 basis point move probably doesn't do a whole lot for the economy', suggesting more rate hikes may be necessary.