De Powell bleift hawkish um 'Jackson Hole' och wann PCE op 6.3% erofgaang ass

US Aktien are down 2.0% on Friday even after the Bureau of Economic Analysis gesot the Personal Consumption Expenditures Price Index eased to 6.3% in July.

Jerome Powell reacts to the PCE reading

Versus the prior month, it was “down” 0.1%; reiterating the narrative of “peak inflation”.

Sicht Dir no séier Neiegkeeten, Hot-Tipps a Maartanalysen?

Registréiert Iech fir den Invezz Newsletter, haut.

Still, Chair Jerome Powell says a couple months of down readings are not enough for the central bank to slam the breaks on raising rates. This morning at “Jackson Hole”, hie sot:

Et ass keng Plaz fir ze stoppen oder ze pausen. D'Restauratioun vun der Präisstabilitéit wäert méiglecherweis eng restriktiv politesch Haltung fir eng Zäit erhalen. Den historesche Rekord warnt staark géint eng virzäiteg loosening Politik.

Core PCE (excluding food and energy) was still up 0.1% month-over-month but the increase, nonetheless, was lower than 0.2% expected.

More pain ahead for the U.S. economy

D'US Wirtschaft huet schonn zwee hannereneen Véierel of negative GDP. But Powell sees more pain ahead as interest rates continue to move up.

While higher interest rates, slower growth, and softer labour market conditions will bring down inflation, they’ll also bring some pain to households and business. But a failure to restore price stability would mean far greater pain.

How much the FOMC chooses to lift rates at its next policy meeting in September, he added, will depend on the “evolving outlook”. Market is torn between half a point and three-quarters of a percentage point at present.

Also on Friday, personal income was confirméiert up 0.2% in July. Economists, however, had modelled for a 0.6% increase instead.