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U.S. PCE hits 40-year high in February


The Fed's most important inflation figure when setting monetary policy, the U.S. PCE deflator accelerated to 6.4% year-on-year in February, a near 40-year high. During the period, the core PCE deflator continued to increase by 0.2 percentage points year-on-year to 5.4%, also hitting a 39-year high. High inflation in the United States continued to drive market expectations for the Federal Reserve to raise interest rates. According to the latest changes in interest rate futures prices, the market expects the probability of the Federal Reserve to raise interest rates by 50 basis points in May hovering above 70%.
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