Market Wire, North America

The Federal Reserve’s preferred inflation measure climbed incrementally as expected in June, leaving monetary policy expectations unchanged across the financial markets. Data released by the Bureau of Economic Analysis this morning showed the core personal consumption expenditures index rising 0.2 percent (0.182 unrounded) from the prior month, matching market forecasts for a modest acceleration from May’s 0.1-percent (0.127 unrounded) print. On a year over year basis, core price growth held at 2.6 percent, the same as in May, slightly above economist estimates.  The overall personal consumption expenditures index rose 0.1 percent relative to the prior month, up 2.5 percent from...

Consumer price growth slowed more than anticipated in the United States last month, putting the Federal Reserve on a heading toward easing policy in September. According to data published by the Bureau of Labor Statistics this morning, the core consumer price index – with highly-volatile food and energy prices excluded – rose 3.3 percent in June from the same period last year – the smallest gain since April 2021 – and was up just 0.1 percent on a month-over-month basis. This undershot consensus estimates among economists polled by the major data providers ahead of the release, which were set at...

In this morning’s Congressional testimony, Federal Reserve chair Jerome Powell avoided clearly telegraphing a September rate cut, instead maintaining the nuanced stance that has characterised his comments over the last month. According to remarks prepared for the Semiannual Monetary Policy Report, released shortly before the live appearance, Powell underlined a growing focus on both sides of the central bank’s dual mandate, saying “the risks to achieving our employment and inflation goals are coming into better balance”. On price risks, the chair said “inflation has eased notably in recent years,” but remains above target, and is showing only “modest further progress”...