Some still question whether the Fed will ease on its hawkish policies, but there is absolutely every indication to believe they will continue at full speed. Core PCE rose 4.9% in August from the year prior and increased 0.6% for the month.

Before the aforementioned data was released, Chicago Federal Reserve President Charles Evans said he was "cautiously optimistic" that the US could avoid a recession. "There are lags in monetary policy and we have moved expeditiously. We have done three 75 basis point increases in a row and there is a talk of more to get to that 4.25% to 4.5% by the end of the year, you're not leaving much time to sort of look at each monthly release," Evans, who is set to retire next year, said.