The Fed Faces a Crucial Inflation Test Wednesday: What the PCE Report Could Mean for Interest Rates

The August Personal Consumption Expenditures price index will be closely watched after the Fed raised interest rates and signaled that additional tightening could be necessary before the end of the year. (Credit: Annabelle Gordon/AFP via Getty Images)

The Federal Reserve's preferred inflation gauge will be released Wednesday morning, and economists expect the report to reinforce an uncomfortable message for policymakers: Price pressures are still stubbornly high even as American consumers continue to spend.

The Bureau of Economic Analysis will release the August Personal Consumption Expenditures price index, or PCE, at 8:30 a.m. ET on Wednesday. The report will be closely watched after the Fed raised interest rates earlier this month and signaled that additional tightening could be necessary before the end of the year.