U.S. PCE inflation eased to 3.4% in August, missing forecasts

U.S. PCE inflation was 3.4% year over year in August, below the 3.7% Reuters consensus, the BEA reported September 30. Stocks rose as traders cut October Fed hike odds to about 35% from 45%, per LSEG. The Fed hiked in September to 3.75%-4.00%, so cooler PCE could shape whether it pauses next.