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Pce

All articles tagged with #pce

Inflation sticks around as Growth Outlook Brightens for Q3
budget-tax-and-economy6 days ago

Inflation sticks around as Growth Outlook Brightens for Q3

U.S. inflation remained above the Fed’s 2% target in July, with the PCE price index up 3.7% year over year and core PCE at 3.3%, while spending cooled modestly and incomes rose faster than prices. BEA data showed durable goods orders rebound and corporate profits surge, and second-quarter GDP growth was left at 1.5% but with consumption revised up to 3.4% and private sales strengthening to 4.2%, signaling stronger private demand and a possible ~3% pace for Q3. The mixed signals keep the Fed focused on inflation, with markets pricing about a 40% chance of a rate hike in September as tariffs and geopolitical tensions continue to influence price pressures ahead of Jackson Hole.

Bitcoin Pauses at $80K Ahead of Inflation Data
finance6 days ago

Bitcoin Pauses at $80K Ahead of Inflation Data

Bitcoin’s rally hit resistance near the $80,000 level as traders await the latest U.S. inflation data (the PCE index). The price hovered around $79,000 after briefly exceeding $81,000, with some profit-taking after a strong run. ETF inflows underpin the move, but momentum signals suggest overbought conditions. A sustained break above $80,000 could open a path to roughly $95,000–$100,000, while failing to hold the level could trigger a near-term pullback.

Core Inflation Holds at 3.3% as July PCE Gains Cruise On
economy6 days ago

Core Inflation Holds at 3.3% as July PCE Gains Cruise On

The Fed’s preferred inflation gauge, the PCE index, rose 0.2% in July, with core PCE up 0.2% to 3.3% year-over-year (overall PCE at 3.7%). Despite softer goods, spending and incomes rose, while energy prices fell and services costs advanced. Markets trimmed some gains as yields moved higher. With no August FOMC meeting, traders eye a potential year-end rate hike—most likely December—while investors await Jackson Hole remarks from Chairman Kevin Warsh.

Nvidia earnings on deck as U.S. stock futures drift near flat before inflation data
markets6 days ago

Nvidia earnings on deck as U.S. stock futures drift near flat before inflation data

U.S. stock futures hovered near flat ahead of the core PCE inflation release and Nvidia’s earnings, with Dow, S&P 500 and Nasdaq futures showing muted moves as investors await the data and the AI-chip maker’s results after the bell; economists expect core PCE at 3.3% and attention remains on the Fed’s policy path and Jackson Hole remarks.

Fed policymaker says inflation will require multiple rate hikes
economy-and-policy22 days ago

Fed policymaker says inflation will require multiple rate hikes

Cleveland Fed president Beth Hammack says inflation will require more than one 25bp rate hike; current rates aren’t meaningfully restraining growth, so acting now is prudent to hit the 2% target. She notes core PCE around 3.3% in June and CPI near 2.5–2.6%, and emphasizes that markets should complement, not substitute, Fed action.

Yield curve warns of persistent inflation as Fed dissent widens
business1 month ago

Yield curve warns of persistent inflation as Fed dissent widens

The Fed held rates at 3.50%–3.75% but dissent grows, with three policymakers urging a hike. Long-dated yields jumped and the yield curve steepened, signaling higher-term inflation risks and lingering policy doubt beyond the next meeting. While PCE measures show some near‑term easing, annual inflation remains well above target, energy costs persist, and investors are pricing a more persistent inflation path and potential policy inertia.

US Q2 Growth Slows to 1.5% as Inflation Remains Above Target
economy1 month ago

US Q2 Growth Slows to 1.5% as Inflation Remains Above Target

U.S. GDP expanded 1.5% in Q2, below forecasts and dragged by weaker inventories and federal spending, even as consumer spending stayed solid. Inflation remains elevated with core PCE at 3.3% (headline PCE around 3.7% year-over-year) and the Fed holding rates at 3.5%–3.75%. June spending rose 0.3% and the savings rate fell to 2.7%, the lowest in four years. Exports rose and imports fell, while energy prices eased and inventories/government spending subtracted from growth, underscoring ongoing inflation pressures despite steady demand.

June PCE cools, but inflation relief may be temporary
economy1 month ago

June PCE cools, but inflation relief may be temporary

The Commerce Department’s Personal Consumption Expenditures price index—the Fed’s preferred inflation gauge—fell 0.1% in June, pulling the annual rate down to 3.7% from 4.1%. The drop was driven largely by energy prices, with gasoline prices sliding as Middle East tensions cooled, boosting energy-driven consumption. Core PCE rose 0.1% month over month to 3.3% year over year, suggesting underlying inflation remains around 3%. While spending grew and the June slowdown provided some relief to households, analysts warn the decline may reverse in July due to energy volatility, keeping the inflation outlook and Fed policy path uncertain.

economy2 months ago

May 2026: U.S. Income and Spending Rise as PCE Gains 0.7%

US May 2026 personal income grew 0.7% (+$181.6B), with disposable income and PCE also up 0.7%; personal saving reached $704.2B (3.0%). The gain was led by farm proprietors’ income and compensation (aided by relief payments), while real PCE rose 0.3% as the PCE price index climbed 0.4% for the month. BEA notes upcoming 2026 annual updates to national, industry, state, and county accounts beginning Sept. 30, 2026.

Oil’s Decline Could Backfire on the Fed’s Inflation Fight
business2 months ago

Oil’s Decline Could Backfire on the Fed’s Inflation Fight

Cheaper crude may cool headline inflation and ease consumer pressure, but it could also spur extra demand in an economy that’s already running hot, potentially nudging the Fed toward higher rates. Apollo economist Torsten Sløk notes a shift in market logic: oil prices falling below $70 hasn’t dragged the 2-year yield down in lockstep, suggesting cheaper oil could lift spending and inflation instead of just cooling it. With core PCE expected to rise to about 3.4% in May, and risks from events like the Strait of Hormuz reopening, investors face a mixed picture where oil’s drag on inflation could be offset by renewed demand, complicating Fed policy.

Dow rises on Micron rally as Nasdaq softens amid hotter PCE inflation signals
markets2 months ago

Dow rises on Micron rally as Nasdaq softens amid hotter PCE inflation signals

Stocks finished mixed as the Dow rose about 1.1% and the S&P 500 gained 0.1%, while the Nasdaq slipped around 0.3%. Micron's blowout results boosted memory-chip optimism and lifted the market, and Qualcomm gained on AI data-center opportunities, but hotter inflation from the PCE index in May (4.1% year-over-year, 0.4% month-over-month) kept rate-hike bets alive. Oil prices eased overall with Brent near 74 and WTI around 70 amid supply dynamics and geopolitical tensions.

AI optimism lifts futures as Micron beats; inflation data stirs rate-hike debate
markets2 months ago

AI optimism lifts futures as Micron beats; inflation data stirs rate-hike debate

Stock futures climbed after Micron Technology beat earnings and boosted AI enthusiasm, with Nasdaq futures up about 2.4%, S&P 500 futures up about 0.8%, and Dow futures up around 0.3% as investors eye the Fed’s inflation data; Micron’s strong outlook spurred relief over AI valuations, while Qualcomm expanded into data-center products. Brent and WTI oil slid to multi-week lows on easing supply concerns. The latest Personal Consumption Expenditures price index showed prices up 4.1% year over year in May and 0.4% month over month, keeping a rate-hike debate alive.

Tech-led premarket rally as Micron beats elevate AI bets; Qualcomm eyes data-center growth
markets2 months ago

Tech-led premarket rally as Micron beats elevate AI bets; Qualcomm eyes data-center growth

Tech stocks jump in premarket trading as Micron’s strong earnings calm AI jitters. Nasdaq-100 futures rise about 2.2%, S&P 500 futures up ~0.8%, and Dow futures inch higher (~0.1%) as Qualcomm’s AI-expansion plans add to sentiment. Investors await the Federal Reserve’s preferred inflation gauge, the PCE price index, which could shape expectations for rate moves.