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US July Consumer Spending and Inflation Rise Together, Weak Jobs Data May Prompt Fed Rate Cut
Summary: According to Jin10, US consumer spending grew steadily in July, with core PCE inflation rising due to increased prices on some goods from import tariffs. However, softening labor market conditions may not deter the Fed from cutting rates next month. Despite low unemployment supporting wage growth, Trump's tariff policies on imported goods have raised costs ...
According to Jin10, US consumer spending grew steadily in July, with core PCE inflation rising due to increased prices on some goods from import tariffs. However, softening labor market conditions may not deter the Fed from cutting rates next month. Despite low unemployment supporting wage growth, Trump's tariff policies on imported goods have raised costs for businesses, leading to reluctance in hiring. Government reports show that in the past three months leading up to July, an average of 35,000 jobs were added per month, significantly lower than the 123,000 in the same period in 2024.
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Link: US July Consumer Spending and Inflation Rise Together, Weak Jobs Data May Prompt Fed Rate Cut [Copy]
