The latest US Personal Consumption Expenditures price index, the inflation gauge most closely watched by the Federal Reserve, showed little change. Headline PCE inflation came in at 3.7% year over year, matching the June reading. Core PCE, which strips out food and energy, was also unchanged from June at 3.3%.
According to the report cited by BlockBeats, PCE data often lands close to investor expectations because it incorporates other inflation readings that have already been released. Even so, the print offered a clearer view of the inflation backdrop at a time when the Fed is still dealing with price pressures.
Attention is now turning to Fed Chair Warsh, who is scheduled to deliver an important speech on Friday. The report noted that while July CPI data brought some relief, with core CPI falling to 2.5%, PCE has remained noticeably firmer because it assigns different weights to spending categories. There is still uncertainty over how Warsh views the inflation problem he inherited. He has not added his own economic projections to the quarterly dot plot, and he has not indicated whether he could support rate hikes at upcoming meetings, an issue that has already divided Fed officials.
The latest US Personal Consumption Expenditures price index has been released, with headline PCE inflation at 3.7% year over year, unchanged from June. The measure is widely treated as the Federal Reserve’s preferred inflation gauge, according to BlockBeats.
Core PCE inflation, which excludes the more volatile food and energy categories, was 3.3% year over year. That reading was also unchanged from June.
PCE print largely reflected previously released inflation data
The report said PCE data often comes in close to investor expectations because it incorporates other inflation indicators that have already been published. Even so, with the Federal Reserve still facing inflation pressure, the release offered a clearer picture of current price conditions.
Focus shifts to Warsh’s Friday speech
July CPI data had delivered what the report described as good news, with core CPI easing to a relatively moderate 2.5%. But PCE inflation has remained noticeably stronger because it gives different weights to different spending categories.
There is still considerable uncertainty over how Federal Reserve Chair Warsh will assess the inflation problem he inherited. The report noted that he has not added his own economic projections to the quarterly dot plot, which compiles Fed officials’ views on the economy and the interest-rate outlook.
He also has not said whether he may support rate hikes at the next several meetings. That question has already led to divisions among Federal Reserve officials, according to the report.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
