The U.S. dollar strengthened across the board on Friday after newly released economic data suggested the Federal Reserve might not rush to implement large rate cuts.
Meanwhile, Wall Street took comfort in data highlighting the ongoing strength of U.S. consumers, who continue to be a vital driver of economic growth.
What Happened: The Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditure (PCE) Price Index, halted its downward trend in July, though it remained below economists’ expectations.
The index held steady at a 2.5% year-over-year rate, the same as in June, slightly under the anticipated increase to 2.6%.
When volatile items like food and energy were excluded, the core PCE Price Index also remained unchanged at 2.6% on an annual basis, missing forecasts of a rise to 2.7%.
In addition to the inflation data, stronger-than-expected reports on personal income and spending further underscored the economy’s robustness.
Personal income rose by $75.1 billion, or 0.3% month-over-month in July, surpassing both the previous and expected increases of ...
