Fed Inflation Gauge Cools
Core PCE inflation eased in August, boosting hopes for a Fed rate hold.
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What happened
The Commerce Department said the Fed’s preferred inflation gauge rose 0.3% in August, below economists’ expectations. Core prices, excluding food and energy, also cooled, pushing stock futures higher and Treasury yields lower as traders cut odds of an October Fed rate hike. The report landed after mortgage rates climbed above 7% and as the Fed weighs whether borrowing costs are high enough to slow prices. The Bureau of Economic Analysis also changed calculations for several service and goods categories, then revised July core inflation lower. Personal income rose 0.2%, while consumer spending climbed 0.9% and the saving rate fell to about 4.1%. Markets now point more toward December for any next increase.
How each side covered it
From the left
Left-leaning accounts framed the data as hopeful but not decisive, stressing consumer strength alongside sticky price pressure. CNN lingered on real spending and a still-running economic engine, even as it described inflation as “stubbornly elevated”. The Guardian leaned into the market lift, tying softer inflation to reduced expectations for another near-term Fed move.
From the right
Right-leaning accounts treated the report as relief for inflation-weary households, while putting more weight on caution about declaring victory. The New York Post emphasized easing price pressure and a likely delay before the Fed’s next increase. It also questioned how measurement changes affected the apparent improvement, making the signal look less clean. Fox Business stressed that inflation remained above target despite the cooler reading.
Headlines
Left2
Good news in US inflation report boosts chances Fed won’t hike ratesCenter6
Inflation cooled slightly last month even as consumers stepped up spending
Fed’s preferred measure of inflation dips to 3.4 percent in August
Dow futures rise as August PCE inflation cools
Core inflation rose 3% on annual basis in August - UPI.com
Inflation moves in the right direction, but markets are still not out of the woods
Right4
Fed's favored inflation gauge cooled in August but remained elevated
Fed’s Preferred Inflation Measure Less Than Expected in August
Key inflation gauge shows consumer prices increased 0.3% from July to August, less than expectedAlso today
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