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US PCE Continues to Exceed Target, Fed Faces Challenges in September Rate Cut Prospects
Summary: According to sources, market analyst Matt Grossman stated that the inflation indicator favored by the Fed did not approach the 2% target level in July, highlighting the policy challenges the Fed faces in preparing for a possible rate cut in September. Data from the US Bureau of Economic Analysis shows that the US PCE price ...
According to sources, market analyst Matt Grossman stated that the inflation indicator favored by the Fed did not approach the 2% target level in July, highlighting the policy challenges the Fed faces in preparing for a possible rate cut in September. Data from the US Bureau of Economic Analysis shows that the US PCE price index rose by 2.6% year-on-year in July, matching the previous month's increase.
The core PCE price index rose by 2.9% year-on-year in July, higher than June's 2.8%. This reading was widely expected as economists can accurately predict PCE inflation using other official data released earlier this month. Despite price increases driven in part by tariffs remaining above target levels, Fed Chair Powell previously hinted that considering a cooling labor market, the Fed is considering its first rate cut of the year in September.
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Link: US PCE Continues to Exceed Target, Fed Faces Challenges in September Rate Cut Prospects [Copy]
