Warsh's Jackson Hole Speech Faces Stubborn Inflation Numbers

The Federal Reserve's preferred inflation measure, PCE, held steady at 3.7% year-over-year in July, a number that may put pressure on investors before Federal Reserve Chair Kevin Warsh's keynote address at the Jackson Hole Economic Policy Symposium.

Economists surveyed by Dow Jones Newswires and the Wall Street Journal had expected an increase of 3.6% in PCE, but the actual figure matched expectations. However, from the prior month, PCE rose 0.2%, after decreasing 0.1% in June.

Nic Puckrin, macro analyst and founder of Coin Bureau, warned that this number should have investors worried, particularly if Warsh's speech on Friday leans hawkish. A rate hike before the year is out remains more likely than a cut, which would mean higher borrowing costs and lackluster returns from risk assets.