Wall Street is preparing for a pivotal release of the Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred measure of inflation.
The data point is widely viewed as the most critical input for policymakers determining the trajectory of interest rates in the second half of 2026.
The release coincides with the second-quarter US GDP report, creating a high-stakes morning for traders assessing the balance between growth and price stability.
The stakes are elevated following last month's surprise acceleration in underlying inflation.
The US core PCE price index rose to an annual rate of 3.4% in May, marking the highest level since October 2023.
This figure represented a significant acceleration in underlying price pressures, complicating the narrative for a steady easing cycle.