July PCE Inflation Hotter Than Expected at 3.7% YoY; Core at 3.3%, Reinforces Fed Hold
- The BEA reported July headline PCE at 3.7% YoY (vs. 3.6% consensus) and core PCE at 3.3% (vs. 3.2%), keeping inflation well above the Fed's 2% target (Fox Business, Bloomberg).
- The dollar posted its biggest gain in four weeks as the print revived hawkish Fed bets; U.S. stocks ended little changed as traders waited for Nvidia's after-the-bell results.
- Hot core services inflation complicates the case for a September cut and gives fresh ammunition to doves-vs.-hawks debate ahead of Jackson Hole.