From Nasdaq: 2024-07-26 15:45:14

U.S. prices showed moderate increase in June, with the PCE price index up 0.1%, indicating a slowdown in inflation. This could lead the Federal Reserve to consider cutting interest rates in September. Consumer spending rose 0.3% while income increased by 0.2%, signaling a potential economic slowdown.

Core PCE inflation, excluding volatile items, remained steady at 2.6% year-on-year in June. This suggests that inflationary pressures are easing, aligning with the Fed’s target rate. With market speculation of a September rate cut, the steady inflation rate may support the case for lowering interest rates.

Personal income and consumer spending in the U.S. saw modest growth in June, but a lower savings rate of 3.4% raised concerns about future economic resilience. The Fed’s upcoming decisions, potentially including rate cuts, are closely monitored by financial markets amidst uncertainties in inflation and economic growth.

With subdued inflation and cautious consumer behavior, the economic outlook remains uncertain. The anticipation of potential rate cuts in September has led to speculation about future economic growth and inflation control. Financial markets are closely watching the Fed’s upcoming policy decisions for insights into the evolving economic landscape.



Read more at Nasdaq: Consumer Spending and Income Rise Modestly Amid Cooling Inflation