**Summary of Personal Consumption Expenditures Data** The latest data from the Personal Consumption Expenditures (PCE) index indicates a slight cooling in inflation pressures, with the core PCE — a key metric watched by the Federal Reserve — rising by 0.1% in May, matching economists’ expectations. Annually, core PCE increased 2.6%, representing the lowest annual growth…
**Fed Expected to Hold Interest Rates Steady** According to a recent Reuters poll, most economists expect the Federal Reserve to keep its benchmark policy rate unchanged between 3.50% and 3.75% at least until September. The survey, conducted among over 100 economists, reflects growing consensus that inflation remains persistent enough to warrant a cautious stance from…
**US Jobless Claims Remain Low** Applications for unemployment benefits in the United States fell to 205,000 last week, continuing a trend of historically low layoffs. The Labor Department reported that the number of people seeking jobless aid has stayed below 210,000 for most of the year, signaling a resilient job market. These figures, which remain…
**US Inflation Gauges Show Contrasting Trends** The US is currently facing a puzzling divergence between its two main inflation gauges: the Consumer Price Index (CPI) and the Personal Consumption Expenditures (PCE) price index. While the CPI, which places a heavier emphasis on housing and out-of-pocket expenses, suggests inflation is rising more strongly, the PCE—which the…
**Steep Decline in Purchasing Power Hits California, New York, and Illinois** A recent study has found that since 2020, residents in California, New York, and Illinois have experienced the largest declines in purchasing power in the United States. The analysis, which used data from the Bureau of Economic Analysis, attributed the trend to rising inflation…
**Trump’s State of the Union Claims: A Fact-Check** During a recent appearance on MSNBC’s “Morning Joe,” Steven Rattner analyzed several economic claims made by former President Donald Trump during his State of the Union address. Rattner pointed out significant factual inaccuracies in Trump’s statements, particularly those concerning the strength and trajectory of the U.S. economy….
**Gold Treads Water Amid Geopolitical Uncertainty and US Economic Data** Gold prices remained relatively steady as investors weighed ongoing tensions between the US and Iran against upcoming US economic data releases, specifically the Personal Consumption Expenditures (PCE) index. The lack of significant movement in gold suggests the market is in a holding pattern, waiting for…
**Changes in India’s Consumer Price Index 2024** India’s government has updated the Consumer Price Index (CPI), changing the weightage assigned to various categories in order to more accurately represent current consumption patterns. Under the new system, the proportion assigned to food in the CPI has been reduced, while housing, health, and telecom have seen an…
**Inflation Concerns and Economic Disparities** Federal Reserve Governor Lisa Cook recently emphasized that inflation in the U.S. remains persistently high, posing ongoing challenges for policymakers. Cook highlighted that, although some economic indicators have improved, prices are still rising faster than the central bank’s target rate. She expressed concerns about the “K-shaped” nature of the current…
**Fed Rate and Growth Outlook** RSM economists have revised their outlook on Federal Reserve policy, now forecasting just one rate cut in 2024, likely in December, instead of the previously anticipated three. This adjustment is driven by persistent inflation and a robust labor market, which have both caused Fed officials to signal a more cautious…