US PCE inflation accelerated in September, fueling expectations of a Fed rate hike in December.

The US PCE price index rose 0.5% month-over-month and 3.6% year-over-year in September, with core prices rising 3.1% year-over-year and 0.3% month-over-month. Federal Reserve officials voted 10-2 to keep interest rates unchanged, and investors expect the Fed to raise rates again at its December meeting. (Source: Jinshi) AI Interpretation: The unexpected rebound in inflation data shattered market optimism about a price decline. The stubborn performance of core inflation underscores the necessity of the Fed's tightening policy. The decision to maintain the current interest rate stance resonates with inflationary pressures, effectively eliminating any room for short-term rate cuts. Market pricing in a December rate hike reflects a deep confirmation of a prolonged high-interest-rate environment. This combination of measures clearly indicates that the Fed will maintain a hawkish stance to curb the inflationary rebound.