Fed Eyes September Hike as PCE Keeps Inflation Hot

The article argues that, despite CPI cooling, August PCE inflation remains stickier than the Fed’s 2% target, and Fed Chair Warsh—and other FOMC members—appear likely to have already decided on a rate increase for the Sept. 16 meeting, guided by the PCE gauge (the Fed’s preferred inflation measure) and Warsh’s Jackson Hole remarks signaling that price stability must move toward 2% at sufficient speed. Market dynamics and the latest data suggest a Sept. hike is increasingly priced in by investors.