BlockBeats reports that on July 31, the Federal Reserve's preferred core inflation metric accelerated in June, reaching one of the fastest growth rates this year, while consumer spending barely grew, highlighting the factors that have led to disagreements among policymakers on interest rate direction. Data released on Thursday showed that the 'core personal consumption expenditures (PCE) price index,' excluding food and energy prices, rose 0.3% from May. It increased by 2.8% year-on-year, reflecting limited progress in curbing inflation over the past year.
Data shows that inflation-adjusted consumer spending rebounded slightly in June after a decline in May. These figures indicate that the tug-of-war in the economy has caused differences among Federal Reserve officials regarding the direction of monetary policy. On one hand, progress on inflation has essentially stalled, and central bank officials are concerned that President Trump's tariffs will put greater upward pressure on prices. On the other hand, the reduction in consumer spending due to a weak labor market could lead to an overall economic slowdown. (Golden Ten)
