Market Wire: US Inflation Pressures Strengthen, Supporting Fed’s Hawkish Stance
American households kept spending last month and the Federal Reserve’s preferred inflation measure climbed by more than expected, lifting odds on more aggressive tightening from the world’s most powerful central bank. Data released by the Bureau of Economic Analysis this morning showed inflation-adjusted household outlays climbing 0.1 percent in August. A -0.489-percent drop in spending on goods was offset by a 0.849-percent increase on the services side, suggesting that falling gas prices are helping boost spending in other areas of the economy. In unadjusted terms, personal income rose 0.3 percent month-over-month, led by another solid 0.3 percent increase in private-sector...