US PCE rose 0.4% MoM Thursday, below economists' 0.5% forecast, prompting a modest dollar dip as markets trimmed Fed rate-hike expectations. Deutsche Bank analysts said the print "dampens the recent weeks' heating-up Fed rate-hike narrative." They added that while Fed officials remain cautious on the inflation outlook, markets are increasingly pricing that the Fed may not need to raise rates this year.

2026-06-26

US PCE rose 0.4% MoM Thursday, below economists' 0.5% forecast, prompting a modest dollar dip as markets trimmed Fed rate-hike expectations. Deutsche Bank analysts said the print "dampens the recent weeks' heating-up Fed rate-hike narrative." They added that while Fed officials remain cautious on the inflation outlook, markets are increasingly pricing that the Fed may not need to raise rates this year.