Recent U.S. inflation readings, including August core PCE at 3.0% year-over-year and headline PCE near 3.4%, remain well above the Federal Reserve’s 2% target and continue to anchor expectations for further policy tightening. Softer September labor data, with nonfarm payrolls rising just 29,000 and the unemployment rate at 4.2%, have tempered near-term hike odds ahead of the October 27-28 FOMC meeting while leaving December pricing elevated. The federal funds rate sits in the 3.75%-4.00% range following the September 25-basis-point increase. Traders monitor upcoming inflation prints, the September FOMC minutes, and any shifts in official communications for signals on the pace of additional adjustments.