Macro EconomyMedium•30 September 2026•
1 min read
US Inflation Revised Lower as Fed Rate Hike Odds Decline
Key Facts
1Annual revisions cut PCE inflation to 3.4% and core inflation to 3.0%.
2Odds of an October Fed rate hike dropped to 37% following the revised data release.
Annual economic revisions have lowered the US personal consumption expenditures (PCE) inflation rate to 3.4% and core inflation to 3.0%. Benzinga reported that these downward adjustments suggest price pressures were less intense than previously estimated.
The odds of the Federal Reserve implementing an interest rate hike in October dropped to 37% following the release of the revised data. This shift in market expectations reflects a cooling outlook on inflation, potentially reducing the urgency for further monetary tightening by the central bank.