PCE Inflation Stays Above Target as Fed Hints at Ongoing Hawkish Stance

The Federal Reserve's preferred measure of inflation, Core Personal Consumption Expenditures (PCE), rose to 3.3% year-over-year in July, surpassing its 2% target.

This figure represents a slight decrease from the previous month's 3.4%, but still indicates persistent inflationary pressures.

The Prolonged elevation above target levels suggests that the Federal Reserve may maintain its hawkish stance on interest rates, potentially impacting the likelihood of rate cuts in upcoming Fed meetings.