Fed’s preferred inflation gauge shows core prices rose 3.3% annually in July
Core PCE inflation stayed at 3.3% in July, and markets now see a higher chance of another Federal Reserve rate hike.
- 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.
62 Articles
62 Articles
The Fed's Preferred Inflation Gauge Came In Slightly Hotter Than Expected. Here's What Investors Need to Know
Key PointsThe Personal Consumption Expenditures (PCE) price index rose slightly higher than expected in July.Core PCE came in as expected.The Federal Reserve is still grappling with how to proceed with interest rates later this year.These 10 stocks could mint the next wave of millionaires › The Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditures (PCE) price index, rose a seasonally adjusted 0.2% in July and was up …
Key inflation gauge remains elevated during Iran war; ongoing US trade fights
WASHINGTON — An inflation measure closely watched by the U.S. Federal Reserve was unchanged last month in the latest sign that many Americans are still struggling with higher costs. The Commerce Department's Wednesday report showed that prices rose 3.7 percent in July compared with a year earlier. Inflation has worsened since the Iran war began in late February, when it stood at 2.9 percent. It's noticeably above the Fed's target of 2 percent. S…
US Fed's preferred inflation gauge unchanged in July
The US Federal Reserve's preferred inflation measure remained unchanged in July, with high energy prices caused by US President Donald Trump's Iran war keeping the gauge higher than targeted. The personal consumption expenditures (PCE) price index rose 3.7 percent from a year ago, the Commerce Department said on Wednesday, steady from the month before. The index rose 0.2 percent over last month. Both figures were largely in line with analyst exp…
At around 1400 GMT the Dow Jones was down 0.01%, the Nasdaq was up 0.08% and the expanded S&P 500 index was up 0.10%. The US government did not change its estimate for the second quarter's gross domestic product (GDP) on Wednesday, still expected to grow 1.5% at an annualized rate. At the same time, the country did not see any progress in inflation last month according to the PCE index which stagnates at a high level (3.7% as in June). Analysts …
Feds Report July Inflation Index At 3.7% Annual Rate
CNBC reports: The Personal Consumption Expenditures index — the Federal Reserve’s preferred inflation measure — held at a 3.7% annual pace in July, slightly higher than forecasted and reflecting persistent cost pressures for consumers. Economists polled by FactSet had predicted a 3.6% annual increase. Wednesday’s report instead showed that inflation remained unchanged from June. “The United States still has an inflation problem. PCE inflation ca…
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