US core PCE inflation steady at 3.3% in July, matching expectations and reinforcing Fed policy uncertainty before Powell’s speech.
The US Dollar Index rose modestly after the Bureau of Economic Analysis reported July’s core Personal Consumption Expenditure (PCE) Price Index, the Federal Reserve’s preferred inflation gauge, held at 3.3% year-over-year. Headline PCE inflation matched June’s 3.7% print, while Q2 GDP growth remained unchanged at 1.5% annualized in the second estimate.
Markets remain cautious ahead of Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Symposium later this week. The lack of progress in inflation data leaves policy expectations finely balanced, with traders awaiting fresh guidance. Earlier this week, the USD strengthened against major peers, led by a 0.8% gain versus the Canadian Dollar.
Trading volumes are subdued as investors avoid large positions before Powell’s remarks. US economic data releases today include July’s Goods Trade Balance and weekly Initial Jobless Claims, though focus remains on Jackson Hole.