Fed Preferred Inflation Gauge Holds Steady at 3.7% in July

The Federal Reserve's preferred inflation gauge held steady at 3.7% for the year ending in July, according to the Bureau of Labor Statistics.

This stubbornly high inflation shows that price pressures continue to pose a major threat to the economy and to President Donald Trump and Republicans' political fortunes ahead of the midterm elections.

The report was largely in line with expectations, but it still indicates that inflation remains above the 2% target set by the central bank.

David Russell, global head of market strategy at TradeStation, said that this report gives the Fed some room to raise interest rates this year.