Inflation measure closely watched by the Fed rises 2.5% in July
Published On Aug 30, 2024, 4:33 AM
In July, the personal consumption expenditures (PCE) price index, an inflation measure significant to the Federal Reserve, rose by 2.5% year-over-year and 0.2% from the previous month. The core PCE, excluding food and energy, similarly increased by 2.6% year-over-year. Rising consumer spending suggests resilience in the economy despite inflation and high interest rates, while indications show the Fed may begin to lower interest rates soon, potentially in response to cooling inflation.
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The current economic climate suggests a decrease in interest rates from the Federal Reserve, which could stimulate growth in various sectors, particularly those sensitive to interest rates such as financials and consumer discretionary.
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