Prices Rose As Expected In July—Here’s What To Know
The post Prices Rose As Expected In July—Here’s What To Know appeared on BitcoinEthereumNews.com.
Topline An inflation measurement favored by the Federal Reserve matched Wall Street’s expectations according to federal data released Friday, complicating hopes for the central bank to lower interest rates next month. The inflation report is the last before the Fed considers interest rate cuts. Xinhua News Agency via Getty Images Key Facts Annual inflation was 2.9% in July and a 0.1% uptick from June, according to core personal consumption expenditures (PCE) price index data released Friday by the Bureau of Economic Analysis, matching consensus analyst forecasts of 2.9%, according to FactSet. The reading remained above the Fed’s 2% target for core PCE inflation, the central bank’s preferred gauge of price changes that excludes food and energy markets, for the 53rd consecutive month. Headline PCE inflation was 2.6%, matching June’s price increases and matching projections. What To Watch For Friday’s PCE report is the last before the Fed’s policy committee meeting in September. Investors are anticipating interest rates, which have been held between 4.25% and 4.5% since December, to be lowered during the September session after Fed Chair Jerome Powell signaled the agency would likely ease its monetary policy earlier this month. The Fed operates on a policy of setting rates to keep inflation and unemployment low, yet Powell warned earlier this year the impact of tariffs on the economy has yet to be seen and could raise prices. Powell noted the “balance of risks [appears] to be shifting” between unemployment and inflation, citing “sweeping changes” in trade, immigration and tax policy under the Trump administration. Big Number 85.3%. Those are the odds the Fed eases interest rates by at least a quarter-point in September, according to CME’s FedWatch. Investors traded at odds as high as 99.9% earlier this month after earlier inflation data indicated prices increased more slowly than expected.…
Filed under: News - @ August 29, 2025 2:30 pm