PCE %6.3'e düşmesine rağmen Powell 'Jackson Hole'da şahinliğini koruyor

ABD hisse senetleri are down 2.0% on Friday even after the Bureau of Economic Analysis şuraya 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”.

Hızlı haberler, önemli ipuçları ve pazar analizi mi arıyorsunuz?

Invezz haber bültenine bugün kaydolun.

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”, dedi ki:

Durmak veya duraklatmak için bir yer değil. Fiyat istikrarının yeniden sağlanması, muhtemelen bir süre daha kısıtlayıcı bir politika duruşunun sürdürülmesini gerektirecektir. Tarihsel kayıtlar, politikanın zamanından önce gevşetilmesine karşı güçlü bir uyarıda bulunuyor.

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

ABD ekonomisi zaten iki ardışık çeyrek 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 rapor up 0.2% in July. Economists, however, had modelled for a 0.6% increase instead.