US PCE inflation 3.7% in July raises Fed rate odds
Inflation in the US ticked up in July, with the key PCE price index rising to 3.7%, a bit higher than economists hoped for.
Since the Federal Reserve wants inflation closer to 2%, this surprise bump has people talking about another interest rate hike soon.
Markets see 44% September Fed hike
Markets now see a 44% chance of a Fed rate hike in September, up from 36% before this data dropped.
The Fed hasn't given clear hints yet, but Heather Long, chief economist at Navy Federal Credit Union, said inflation is still "The United States still has an inflation problem."
Most traders expect at least one more rate increase before the end of the year, with the next big decision coming in September.
If rates go up again, borrowing (think loans and credit cards) could get pricier as the Fed tries to keep prices under control and steady out economic growth.