US Inflation Holds Steady at 3.7%, Fueling Fed Rate Debate
US inflation has remained sticky in July, holding steady at 3.7% above the Federal Reserve's 2% target for the 65th consecutive month.
The Personal Consumption Expenditures Price Index (PCE) saw no change from June, as economists had forecasted a reading of 3.6%, according to data released by the Commerce Department's Bureau of Economic Analysis on Wednesday.
This marks a pause in the decline from a recent peak of 4.1% in May, which was sparked by President Donald Trump's air strikes against Iran and subsequent energy price surge.
The sluggish pace of improvement has bolstered the arguments of Federal Open Market Committee members who voted to leave interest rates unchanged in July, but some officials argue that tighter policy is needed given inflation has been above target since February 2021.