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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. This underlines economic resilience amid enduring concerns over elevated fuel prices.
- The economy "is running hot" as high spending growth persists alongside significant inflation. 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.
- Navy Federal Credit Union's chief economist told Bloomberg that economic activity could stall if inflation readings continue to come in above the Federal Reserve's 2.0% target. This raises concerns about future stability.
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14 Articles
14 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...
·Washington, United States
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Fed's Preferred Inflation Gauge Misses Expectations; Goldman Drops October Rate-Hike Call
The Federal Reserve's preferred inflation gauge came in below market expectations, according to data released by the Bureau of Economic Analysis, prompting Goldman Sachs to withdraw its forecast for an October rate hike as traders reassessed the pace of monetary tightening heading into the final months of the year.Read more...
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Total News Sources14
Leaning Left2Leaning Right1Center2Last UpdatedBias Distribution40% Left, 40% Center
Bias Distribution
- 40% of the sources lean Left, 40% of the sources are Center
40% Center
L 40%
C 40%
R 20%
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