Overview

• The PCE price index rose 0.3% in June and 2.6% year-over-year while core PCE excluding food and energy advanced 2.8%, both above the Fed’s 2% target.
• Economists say higher goods prices partly reflect businesses passing new import tariffs imposed since February onto consumers.
• Real personal spending rebounded by 0.3% in June following a May decline and personal income also increased by 0.3%.
• The central bank held its benchmark rate steady for a fifth straight meeting, with Governors Christopher Waller and Michelle Bowman dissenting in favor of immediate cuts.
• Chair Jerome Powell emphasized a cautious, data-dependent approach before committing to any rate reductions amid persistent inflation risks.