Summary
A report from the Commerce Department shows that the inflation measure preferred by the Federal Reserve stayed mostly steady in July, while core inflation, which excludes food and energy prices, slightly increased. Consumer spending also went up significantly, which could help boost economic growth. Despite these changes, the Federal Reserve is cautious about interest rate cuts.
Key Facts
- The Federal Reserve's preferred inflation measure rose 2.6% in July compared to the previous year, unchanged from June.
- Core inflation, which excludes food and energy, increased by 2.9% from a year earlier.
- Consumer prices rose 0.2% from June to July.
- Consumer spending increased by 0.5% in July, the largest rise since March.
- Income went up by 0.4% from June to July, driven by higher wages and salaries.
- Fed Chair Jerome Powell mentioned a possible interest rate cut in the upcoming meeting.
- President Trump has been pushing for lower interest rates and tried to fire a Fed board member.
