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Fed's favored inflation gauge shows consumer price pressures remained elevated in July

The Fed’s preferred inflation gauge, the PCE index, showed price pressures remained elevated in July, rising 0.2% monthly and 2.6% annually, while core PCE (excluding food and energy) rose 0.3% monthly and 2.9% annually, its highest since February. Goods prices were modestly higher, while services costs jumped 3.6%. Wages rebounded with a 0.6% monthly gain.

Fed Chair Jerome Powell signaled at Jackson Hole that while a weakening labor market could justify rate cuts, tariffs are clearly pushing consumer prices up, creating uncertainty about whether inflation pressures will fade or persist.

With inflation still above the Fed’s 2% target, policymakers face a “tough spot” balancing jobs and prices. Markets now expect a September rate cut is likely, but inflation risks may limit how quickly or aggressively the Fed can ease. Read More.

_{US NEWS}Watch

The housing market's sleepy summer: Fewer sales, fewer buyers and fewer homes

The U.S. housing market is stuck in a summer slowdown, with fewer buyers, sellers, and new construction. The NBC Home Buyer Index for July was 81.1, signaling “extreme difficulty” for buyers. Demand has shrunk due to mortgage rates above 6% since 2022, leaving fewer people able to purchase. As prices slipped in 39 of the top 50 markets, many sellers pulled listings, worsening scarcity.

New home completions fell 6% year-over-year, as builders face weak demand, higher material costs from tariffs, and labor shortages linked to immigration crackdowns. Experts say buyers are largely waiting on the Fed’s expected September rate cut, which could ease mortgage rates and revive activity, though it won’t fix all structural challenges. Read More.