US Consumer Demand Holds Up, Supporting The Dollar’s Rate Premium
The Federal Reserve’s preferred inflation measure climbed as expected in August and personal income and spending numbers beat forecasts, making it more difficult to justify an aggressive course of rate cuts in the coming months. Data released by the Bureau of Economic Analysis this morning showed the core personal consumption expenditures index rising 0.2 percent from the prior month, closely matching market estimates. On a year-over-year basis, core price growth held at 2.9 percent, also aligning with economist forecasts for a 2.93-percent increase. The overall personal consumption expenditures index climbed 0.3 percent relative to the prior month, and was up...