Fed's preferred inflation gauge shows prices increased in line with Wall Street's expectations in July

Published On Aug 30, 2024, 8:41 AM

The core Personal Consumption Expenditures (PCE) index reported by the Fed increased by 0.2% in July, aligning with Wall Street's expectations and maintaining the previous month's pace. Over the past year, prices rose 2.6%, slightly below the anticipated 2.7%. In light of this data and recent remarks by Fed Chair Jerome Powell indicating confidence in inflation returning to the Fed's 2% target, a rate cut in September seems likely. Economists are observing the inflation trends cautiously, considering potential challenges in the labor market that may influence future monetary policy adjustments.