The Kobeissi Letter, a prominent financial markets commentary publication, stated on X today, Thursday, October 29, 2026, that recent inflation data indicates a coming rate hike from the Federal Reserve. The publication posted that "US September PCE inflation, the Fed's preferred inflation metric, rises to 3.6%. Core PCE inflation also rose to 3.1%, up +0.3% month-over-month. This officially confirms that CPI, PPI, and PCE inflation are all rising again. A December rate hike is coming." This assessment highlights a concerning trend for policymakers and market participants alike, suggesting that inflationary pressures are re-emerging across the economy.
The latest PCE inflation figures arrive as markets grapple with mixed economic signals. Recent Gokhshtein coverage noted that PCE Inflation Cools Sentiment, suggesting some easing of price pressures. However, other reports highlighted consumer giants showing 2027 price hikes, threatening the Fed's disinflationary path. The new PCE data, alongside previously reported CPI and PPI increases, could challenge existing market expectations and intensify focus on the Federal Reserve's upcoming policy decisions.
The Kobeissi Letter's view implies that the Federal Reserve will likely respond to the re-acceleration of inflation by tightening monetary policy. Investors should watch for further statements from Fed officials and upcoming economic indicators, as a December rate hike would mark a significant shift in the central bank's strategy to combat persistent price increases. The publication suggests that the comprehensive rise across key inflation metrics leaves the Fed little choice but to act to maintain price stability.
