July Personal Consumption Expenditures report
Headline
y/y 3.7% v 3.6% expected prior 3.7%
m/m +0.2% vs +0.1% expected -0.1% prior
Core PCE
3.3% y/y v 3.3% expected Prior 3.3%
+0.2% m/m v +0.2% expected Prior +0.1%
Consumer spending and income for July:
Personal income +0.4% v +0.2% expected. Prior +0.2%
Personal spending +0.2% vs +0.1% expected. Prior +0.3%
Real personal spending 0.0% vs +0.4% prior
Market pricing a 35% chance of a Fed rate hike on September 16. Ultimately, the Fed has missed its inflation target of 2% for five years. With headline at 3.6%, data center spending booming and the Iran war continuing, there is plenty of pricing pressure.