Breaking News: August PCE Price Index Rises 0.1%, Core Inflation at 2.7% - Market Reactions and Expert Comments
The latest report from the Commerce Department shows that the Personal Consumption Expenditures (PCE) price index rose by 0.1% in August, slightly below economists' expectations. Core inflation, excluding food and energy, also increased by 0.1% with a year-over-year rate of 2.7%. These numbers suggest that inflation is moving in the right direction, but the Federal Reserve may need to take further action to meet its 2% target.
Market reactions were mixed, with U.S. stock futures up by 0.16%, while Treasury yields eased. Experts weighed in on the data, with Quincy Crosby from LPL Financial noting that the Fed may need to consider another round of rate cuts. Jamie Cox from Harris Financial Group emphasized the importance of spending to keep the economy strong, predicting more rate cuts in the near future.
Brian Jacobsen from Annex Wealth Management highlighted the impact of falling interest rates on personal income and spending, while Peter Cardillo from Spartan Capital Securities pointed out that lower inflation and weakening economy could lead to further rate cuts from the Fed.
In conclusion, the August PCE report provides valuable insights into the state of the economy and the Fed's future actions. Investors should pay close attention to these indicators as they can have a significant impact on financial markets and personal finances. Stay informed and make wise investment decisions based on the latest data and expert analysis.