TechFlow news, August 29 — According to Jinshi Data, market analyst Matt Grossman said the Federal Reserve's preferred inflation gauge failed to move closer to the 2% target in July, highlighting the policy challenges facing the Fed as it prepares for a possible rate cut in September. Data from the U.S. Bureau of Economic Analysis showed the U.S. PCE price index rose 2.6% year-on-year in July, unchanged from the previous month.
The core PCE price index increased 2.9% year-on-year in July, up from 2.8% in June. This figure was widely anticipated, as economists could use other official data released earlier this month to accurately forecast PCE inflation.
Although price increases, partly driven by tariffs, remain persistently above target levels, Fed Chair Powell previously suggested the central bank is considering its first rate cut this year in September, given signs of a cooling labor market.
