Fed’s preferred gauge showed core inflation at 3.0% in August, much lighter than expected
Consumer spending surged 0.9% as the Fed’s preferred inflation gauge stayed below economists’ forecast, keeping a rate hike in play.
- On Wednesday, the Commerce Department's Bureau of Economic Analysis reported core PCE inflation rose 3.0% year-on-year and 0.2% month-on-month in August, with headline PCE at 3.4%, falling below economist expectations of 3.7%.
- The Bureau of Economic Analysis updated PCE inflation methodology retroactively to 2021, revising July's headline inflation down from 3.7% to 3.4% and core inflation from 3.3% to 3.0%, affecting historical readings used to assess inflation trends.
- Consumers increased spending 0.9% in August, up from a downwardly revised 0.1% in July, demonstrating resilience despite consumer confidence plummeting to a near 12-1/2-year low on Tuesday.
- Financial markets rallied Wednesday as the cooler-than-expected inflation report prompted investors to scale back October rate hike odds to 35% from 70% on Monday, according to CME FedWatch data.
- While inflation remains above the Federal Reserve's 2% target, New York Fed President John Williams said "there is no need for urgency" before the October meeting, signaling officials will await more data.
221 Articles
221 Articles
Bedford Gazette
Wall Street holds steadier following a potentially encouraging update on inflation
Some of the pressure that’s ballooned in the bond market is easing after a report said inflation across the United States wasn’t as bad last month as economists expected. The better-than-expected data helped some Treasury yields pull back a bit…
Five Questions DEMS Should Face In Light Of Latest Inflation Numbers
Latest inflation numbers dropped yesterday. They’re not only trending in the right direction, but beating expectations by a modest degree, too. Here’s the reporting. Judge for yourself: BREAKING: Core U.S. inflation came in at 3%, below expectations according to the Fed’s preferred inflation gauge. FOX Business called it “LESS INFLATION than we thought,” while CNBC described the reading as “MUCH lighter than expected.” That immediately puts the…
The Dow Jones lost 0.86% and the expanded S&P 500 index fell by 0.25%. Only the Nasdaq index finished in the green (+0.24%). According to the PCE index published on Wednesday, prices rose by 3.4% over a year in the United States in August. The market was down by 3.7%. At the same time, US economic growth in the second quarter was significantly revalued upwards (+2.2% annualized, compared to +1.5% previously reported). "These reports have strengt…
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