In September, the United States Core Personal Consumption Expenditures (PCE) Price Index increased by 2.8% compared to the previous year. This was slightly lower than the expected 2.9% rise. The FXStreet article lists the best brokers for 2025 for different trading needs. It highlights brokers that offer low spreads, high leverage, and regulated options, among others.

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Core PCE Report for September

The September Core PCE inflation report was a bit below expectations at 2.8%. This follows a disinflation trend seen throughout 2025, bringing us closer to the Federal Reserve’s target of 2%. It suggests that the aggressive interest rate hikes in 2023 and 2024 have successfully slowed the economy. This lower inflation number makes it unlikely that there will be a surprising hawkish stance at the Federal Reserve’s meeting in December. The fed funds futures markets reflect this, now showing an over 80% chance of a rate cut by March 2026. The focus has shifted from *if* the Fed will cut rates to *when* and by how much. Market volatility, measured by the VIX index, has dropped to around 14. This indicates a growing belief that the worst of the rate uncertainty is over. For derivatives traders, this low implied volatility could create chances to sell options premiums. Strategies like selling cash-secured puts on interest-rate sensitive stocks might be worth considering to take advantage of this stability. We should also keep an eye on the U.S. 2-year Treasury yield, which has fallen below 4.1% due to the cooling inflation data. This decline in short-term rates could make trades expecting a flatter or inverted yield curve less appealing. Traders might want to consider options on Treasury futures to prepare for continued decreases in yields as we head into the new year. Create your live VT Markets account and start trading now.

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