US Macro Data to Shape Fed Rate Hike Expectations

The upcoming week will be crucial for US markets as they face a concentrated macroeconomic data window from late September to early October.

The Federal Reserve raised interest rates by 25 basis points in its September 16 meeting, taking the target range for the federal funds rate to 3.75%-4.00%.

The US August PCE price index and September nonfarm payrolls report will be released on Wednesday and Friday respectively, providing valuable insights into inflation and employment trends.

If core PCE continues to accelerate, particularly with sustained pressure on service prices, the likelihood of another Fed rate hike in October or by year-end could rise, potentially lending support to US Treasury yields and the US dollar.