Markets Are Treating Single Inflation Print as Determinant of Policy -- Market Talk

1359 ET - Markets are now treating a single inflation print as the primary determinant of policy, EY-Parthenon chief economist Gregory Daco says. In recent speeches, he says some policymakers expressed the view that if core PCE inflation trends around 0.2% month-over-month, they would not favor a rate hike. Against this backdrop, the 0.3% month-over-month increase in core CPI in August was interpreted as implying a 0.3% month-over-month advance in the Fed's preferred core PCE gauge, he said. Daco added that with such a reading above the implicit threshold for rate hikes, market odds of a rate hike surged.(jessica.coacci@wsj.com)

(END) Dow Jones Newswires

September 14, 2026 14:00 ET (18:00 GMT)