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Bank of America survey: If PCE exceeds 3%, it may trigger Fed rate hikes
On February 14th, according to the forex and Interest Rate sentiment survey conducted by Bank of America in February, most respondents (58%) believe that if the US PCE inflation rate exceeds 3%, it may prompt the Federal Reserve to raise interest rates. The PCE index is the Fed’s preferred inflation gauge. The survey also shows that 12% of respondents believe that if the 5-year/5-year inflation breakeven rate (based on market inflation expectations) exceeds 3%, it may become a trigger for rate hikes.