The PCE Index has remained above the Federal Reserve’s target and continues to be the Federal Reserve’s preferred measure for tracking inflation. Although the latest reading was not significantly above expectations, when considered alongside a number of other factors, it could contribute to the potential for a rate increase, particularly as the PCE Index has repeatedly come in higher than expected in recent months. At the Jackson Hole Symposium, the Federal Reserve commented that it remains committed to bringing inflation back to its 2% target. The Fed additionally stated that it would no longer provide forward guidance on future rate…

The latest FOMC minutes reinforced the Federal Reserve’s continued focus on price stability, with policymakers voting to maintain the current federal funds rate for the time being. However, the path forward remains uncertain, particularly as persistent inflation continues to complicate the case for additional rate cuts. In fact, several policymakers have indicated greater concern about inflation and favored tighter monetary policy at the most recent meeting. With the more recent departure of former Fed Chair Jerome Powell, there is a lot of uncertainty about where the Federal Reserve will move under the current administration. There is also a lot of…

Both the Consumer Price Index (CPI) and Producer Price Index (PPI) reported figures that were either entirely in line with expectations or just slightly below them. This does not set any new precedent for the potential of a rate increase from the Federal Reserve, as inflation is still rising, just at a largely expected rate. Retail sales have also shown signs of a slump compared to previous quarters, with gas prices and Amazon Prime Day among the primary culprits. This isn’t necessarily a broader indicator of overall economic health, but there is certainly pressure being felt from persistent inflation across…