Fed’s preferred inflation gauge shows core prices rose 3.3% annually in July
- The Bureau of Economic Analysis reported Wednesday that core personal consumption expenditures inflation remained unchanged at 3.3% in July, matching June's pace and staying above the Federal Reserve's 2% target.
- Inflation has worsened since the Iran war began in late February when it stood at 2.9%, and during the Federal Open Market Committee's July meeting, "many" participants indicated interest rate hikes would "likely be necessary if inflation did not decline."
- Headline PCE rose 3.7% in July, notably above the 2% target, while markets priced in a 72.7% probability of interest rate hikes by December according to CME Group's FedWatch data.
- Some Fed officials remain divided on whether to hold rates steady or raise them to combat inflation, though some view the 0.2% monthly core inflation as a reassuring sign toward the 2% target.
- Federal Reserve Chair Kevin Warsh will deliver a high-profile speech on Friday at the central bank's annual symposium in Jackson Hole, Wyoming, with Wall Street closely watching for signals on future interest rate steps.
39 Articles
39 Articles
US inflation holds at 3.7% in July, complicating Fed rate debate
U.S. inflation remained unchanged in July, exceeding the Federal Reserve's target. This persistent inflation complicates the central bank's debate on interest rates. Economic growth for the second quarter was also reported unchanged at 1.5%. New tariff pressures are anticipated after trade talks with Canada failed. The Federal Reserve faces a difficult decision regarding monetary policy adjustments.
The U.S. Consumer Expenditure Price Index (CPE), the Federal Reserve's preferred inflation metric (Fed), rose 0.2% in July compared to the previous month, after a fall of 0.1% in June, according to the country's Department of Commerce. The result was slightly above the high consensus of 0.1% of a group of market analysts. In relation to the same period in the previous year, the PCE rose 3.7% in July, after an advance of the same magnitude in Jun…
US inflation remains sticky in July; 2nd-quarter GDP unrevised at 1.5%
Aug 26 (Reuters) - Annual U.S. inflation unexpectedly held steady in July well above the Federal Reserve's 2% target for the 65th straight month, and the pause in the decline from a recent Iran-war induced peak is likely to add to the central bank's t...
(New York = Yonhap News) Correspondent Kim Yeon-sook = The U.S. Department of Commerce announced on the 26th (local time) that the Personal Consumption Expenditures (PCE) price index for July rose 3.7% compared to the same month last year...
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