Fed's preferred measure of inflation dips to 3.4 percent in August
Consumer spending rose 0.55% after inflation in August, while the Fed’s preferred inflation gauge eased to 3.4%, the Bureau of Economic Analysis said.
- Consumer spending reached an annual rate of $22.3 trillion in August, jumping 6.1% year-over-year, according to the Bureau of Economic Analysis. The data underlines economic resilience amid enduring concerns over elevated fuel prices.
- High spending growth alongside significant inflation indicates the economy "is running hot." Spending remained strong in August, though income growth is not keeping up with these inflationary pressures.
- Services accounted for 69% of total spending, while 11% went to durable goods like Motor vehicles and Recreational equipment. Housing and Healthcare services dominated the services category.
- The 10-year Treasury yield rose to 5.30%, dampening White House hopes that the nation could grow out of its debt. Washington's interest payments on debt now eclipse military spending.
- Economic activity could stall if inflation readings continue to come in above the Federal Reserve's 2.0% target, Navy Federal Credit Union's chief economist told Bloomberg. This raises concerns about future economic stability.
15 Articles
15 Articles
Fed's preferred measure of inflation dips to 3.4 percent in August
The Federal Reserve’s preferred measure of inflation dipped in August, as multiple central bank officials have said future interest rate hikes could be on the horizon. The personal consumption expenditures (PCE) price index rose 0.3 percent from July to August and was up 3.4 percent year over year, according to data released Wednesday by the...
Key takeaways New figures from the US Department of Commerce show that inflation rose less sharply in August than expected. As a result, the Federal Reserve has more room for maneuver in its upcoming policy decisions. PCE price index The Personal Consumption Expenditures (PCE) price index, the primary measure the central bank uses to monitor inflation after 2 percent […]
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