thailandedition
US PCE at 3.7% Increases Likelihood of September Fed Rate Hike

US PCE at 3.7% Increases Likelihood of September Fed Rate Hike

Post Today•Economy•1h ago

Reader Briefing

Rising US PCE inflation data increases investor expectations for a Federal Reserve interest rate hike in September.

  • •July's Personal Consumption Expenditures (PCE) index rose to 3.7% year-on-year.
  • •Core PCE remained steady at 3.3%, exceeding the Federal Reserve's 2% target.
  • •Investors' expectations for a September rate hike increased from 36% to 44%.
  • •The Federal Reserve has maintained interest rates between 3.50% and 3.75% since December.

Overview

  • •The US Department of Commerce reported the July PCE index rose to 3.7%, up from 3.6% in June.
  • •The Core PCE index, which excludes food and energy, remained unchanged at 3.3%.
  • •The Federal Reserve has kept the policy interest rate in the range of 3.50% - 3.75% since December.
  • •Kevin Worch, the Federal Reserve Chairman, maintains a clear stance on suppressing inflation.
  • •Heather Long of Navy Federal Credit Union stated that the US still cannot shake off inflation and Kevin Worch needs clearer communication with the market.
  • •Fed funds futures show investor expectations for a September rate hike rose to 44% from 36%.
  • •The Federal Reserve has a target to push inflation down to a level of 2%.
  • •Market signals indicate a high confidence that the Federal Reserve will raise the policy interest rate at least once before the end of the year.

Full article content is available on the original source.

Read on Post Today (Thai Version)View in Google Translate

Source: Post Today (Original)

Key Quotes

Heather Long
"The US still cannot shake off the inflation problem; although the latest figures help buy time for Worch to monitor the situation, he needs to communicate more clearly with the market."
สหรัฐฯ ยังคงสลัดปัญหาเงินเฟ้อไม่หลุด แม้ตัวเลขล่าสุดจะช่วยซื้อเวลาให้วอร์ชรอดูสถานการณ์ได้อีกระยะหนึ่ง แต่เขาจำเป็นต้องสื่อสารกับตลาดให้ชัดเจนกว่านี้

Key Entities

Organization

Federal Reserve(ธนาคารกลางสหรัฐฯ (เฟด))ℹ️
The US central bank aiming to reduce inflation to 2% and managing policy interest rates.
US Department of Commerce(กระทรวงพาณิชย์สหรัฐฯ)ℹ️
The government body that revealed the July inflation and PCE figures.
Navy Federal Credit Unionℹ️
The organization where Heather Long serves as Chief Economist.

Person

Kevin Worch(เควิน วอร์ช)
The Chairman of the Federal Reserve who has a clear stance on suppressing inflation.
Heather Long(เฮเธอร์ ลอง)
Chief Economist at Navy Federal Credit Union.

Place

United States(สหรัฐฯ)ℹ️
The country facing continuous inflationary pressure.