Warsh Warns of Stubborn Inflation Amid Slowing Consumer Spending

Federal Reserve Chairman Kevin Warsh emphasized his desire to see underlying inflation clearly heading lower at an annual gathering in Wyoming. However, recent government figures have been less than encouraging.

The personal consumption expenditures price index, excluding food and energy, rose in line with expectations in July. Yet, the annual gauge remained stubbornly stuck at 3.3%.

Meanwhile, consumer spending stalled in a concerning development for economists and policymakers alike.