Fed inflation gauge due Wednesday as officials retain prospect of another rate hike

  • The Federal Reserve will release its preferred inflation gauge Wednesday.
  • Inflation remains well above the central bank's 2% target year over year.
  • Two key Fed officials still see another rate increase before year-end.

The Federal Reserve's preferred inflation gauge is due Wednesday and is expected to show little or no change in the year-over-year inflation rate, which remains well above the central bank's 2% target. The release will also include consumer spending and income data, but the readings are unlikely to argue against further monetary-policy tightening. Two key Fed officials said Tuesday that they still see a possibility of another interest-rate increase before the end of the year.

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