Fed Rate Hike Likely If PCE Inflation Exceeds 3%, Survey Finds

According to Odaily, a survey conducted by Bank of America in February revealed that 58% of respondents believe the U.S. Federal Reserve may raise interest rates if the annual Personal Consumption Expenditures (PCE) inflation rate surpasses 3%. The PCE is the Fed's preferred measure of inflation. Additionally, 12% of those surveyed indicated that a market-based inflation expectation, specifically the 5-year/5-year forward inflation breakeven rate, exceeding 3% could also trigger a rate hike.