PCE Report Stokes Inflation Fears as Consumer Confidence Hits New Low

The US economy is set to receive an important update on Wednesday as the Personal Consumption Expenditures (PCE) report is released. The PCE, used by the Federal Reserve to gauge inflation, has been a key indicator of economic health in recent months. If the headline PCE is higher than 3.7% and the core PCE is higher than 3.3%, there could be an increased likelihood that inflation rates will rise again.

This comes as consumer confidence has taken a hit, with a September survey showing that 68% of people believe interest rates will rise within the next 12 months. The report is closely watched by investors and economists alike, who are looking for any signs of inflationary pressures in the economy.