Fed’s preferred gauge showed core inflation at 3.0% in August, much lighter than expected
- Wall Street's main indexes opened higher on Wednesday, September 30, 2026, as a softer-than-anticipated inflation reading eased fears about Federal Reserve rate hikes; the Dow Jones Industrial Average rose 74.9 points, or 0.15 per cent.
- Consumer prices rose 3.4 per cent year-over-year, according to Wednesday's report, falling short of the 3.7 per cent increase economists expected, easing concerns about Federal Reserve action.
- Both the S&P 500 and Nasdaq Composite posted gains, with the S&P 500 rising 0.24 per cent to 7,688.99 and the Nasdaq Composite climbing 0.36 per cent to 26,892.796.
- Traders pared back bets that the Federal Reserve will raise its main interest rate next month, with market data now indicating just a 35 per cent chance of a hike.
- The 10-year Treasury yield edged down late Tuesday, supporting the broader stock market by making borrowing money more expensive for everyone and slowing the overall economy.
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155 Articles
Inflation Figures Ease Pressure on Fed
Inflation is still running hotter than the Federal Reserve wants, but August's numbers demanded a bit softer than Wall Street expected. The Commerce Department said the Fed's preferred gauge, the personal consumption expenditures index, rose 3.4% from a year earlier, versus forecasts of 3.7%, with gas prices behind...
US Inflation Rises 3.4% in August as Consumer Spending Jumps 0.9%: BEA
Get latest articles and stories on Business at LatestLY. US inflation, measured by the Personal Consumption Expenditures (PCE) price index, rose 3.4 per cent in August from the same month a year ago, while consumer spending increased 0.9 per cent during the month, according to the latest estimates released by the US Bureau of Economic Analysis (BEA). Business News | US Inflation Rises 3.4% in August as Consumer Spending Jumps 0.9%: BEA.
The PCE stood at 3.4% in August and with an underlying inflation of 3%, giving strength to the Fed's 'doves' who no longer want interest increases in the immediate. Revisions in the index methodology also led to a low update of the July reading.
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