The Claman Countdown panelists Jonathan Corpina and Gabriela Santos discuss the Feds decision to keep interest rates the same.
The Federal Reserve’s preferred inflation gauge showed that prices increased slightly in June as the central bank continues to monitor for signs of tariff-induced inflation impacting consumers.
The Commerce Department on Thursday reported that the personal consumption expenditures (PCE) index rose 0.3% on a monthly basis and 2.6% from a year ago, with the headline figure above the estimate of economists polled by LSEG. Those figures mark accelerations from last month’s readings of 0.1% and 2.3%.
Core PCE, which excludes volatile food and energy prices, was up 0.3% on a monthly basis in June and 2.8% from a year ago, with the annual figure coming in above estimates. On an annual basis, core PCE ticked higher from 2.7% last month, though the monthly figure ticked higher from the 0.2% reading in May.
Federal Reserve policymakers are focusing on the PCE headline figure as they try to bring inflation back to their long-run target of 2%, though they view core data as a better indicator of inflation.
This is a developing story. Please check back for updates.
