Fed Splits on Rates Before Jackson Hole as July Core PCE Holds at 3.3%
Updated
Updated · Yahoo Finance · Aug 26
Fed Splits on Rates Before Jackson Hole as July Core PCE Holds at 3.3%
3 articles · Updated · Yahoo Finance · Aug 26
Summary
July core PCE inflation held at 3.3% from June, keeping pressure on the Federal Reserve just as officials head into this week’s Jackson Hole symposium.
Monthly core prices rose 0.2%, up from 0.1% in June but still at a pace New York Fed President John Williams has said is consistent with inflation returning to the 2% target without another hike.
That leaves policymakers divided: Boston Fed President Susan Collins said she could support holding rates only if inflation keeps easing, otherwise a hike would be appropriate soon.
Economists at Capital Economics and Morgan Stanley Wealth Management said the data likely will not trigger a September move, though Capital Economics still expects a quarter-point increase in December and another early next year.
Friday’s Jackson Hole speech by Fed Chair Kevin Warsh is expected to stay broad rather than signal September policy, leaving upcoming inflation and labor data to shape the next rate decision.