US Inflation Data Release Set to Test Markets and Trump's Midterm Chances

The US inflation data release on Wednesday will be crucial for financial markets and could also have an impact on the upcoming midterm elections.

The Federal Reserve's preferred inflation gauge, PCE, is expected to show a 0.3% monthly increase in core inflation, which is in line with forecasts.

A stronger-than-expected reading could lead to further rate hikes, pushing bond yields higher and potentially hitting stocks and cryptocurrencies such as Bitcoin, which has already taken a hit from the recent rate increases.