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Fed's Favourite Inflation Gauge Could Force a Rate Hike — Markets on Edge

MarketWatch·Thursday, 25 June 2026
Fed's Favourite Inflation Gauge Could Force a Rate Hike — Markets on Edge

The upcoming PCE inflation report — the measure the US Federal Reserve watches most closely — could either calm markets or trigger fears of another rate hike. The article identifies two hidden triggers in the data that traders may be underestimating.

Why It Matters

If the Fed raises rates, it strengthens the dollar and tightens global credit, which puts pressure on emerging market currencies and capital flows worldwide.

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