The preferred inflation scale of the Federal Reserve is mostly cold, but it is hot under the surface again

The Ministry of Commerce said on Friday, which is the same annual increase as it was in June, prices increased by 2.6 % in July a year ago. With the exception of the categories of food and volatile energy, prices have increased by 2.9 % from the previous year, up from 2.8 % in the previous and higher month since February.

The numbers show the reason for the presence of many federal reserves It was hesitant To reduce the main interest rate. While inflation is much lower than peak by almost 7 % that it reached three years ago, it still exceeds the goal of the Federal Reserve significantly by 2 %.

At the same time, the report showed that spending on consumers has risen last month and could boost economic growth, which was widely weakened in the first six months of the year.

On a monthly basis, consumer prices increased by 0.2 % from June to July, a decrease from 0.3 % from the previous month, while basic prices increased by 0.3 % for the second month in a row.

The numbers are similar to the reported earlier this month in the widespread consumer price index, which increased by 2.7 % from last year. The basic consumer price index increased by 3.1 % in July compared to the previous year.

Separately, a Friday report showed that consumers’ spending jumped by 0.5 % in July, the largest increase since March and indications that many Americans are still ready to open their governorates despite the high interest rates and uncertainty surrounding the economy. Spend spending sharply on long -term commodities such as cars, hardware and furniture, many of which are imported.

The report showed that the income increased by 0.4 % from June to July, supported by a healthy increase in wages and salaries.

Federal Reserve Chairman Jerome Powell said the central bank is likely to reduce its main average at its meeting next month. But politicians are expected to continue with caution and not clear the number of cuts that will happen this year.

When the Federal Reserve reduces the key rate, often Not always Reducing borrowing costs for things such as real estate loans, auto loans and commercial borrowing.

Trump has been relentlessly Powell and the Federal Reserve of Low interest rates from this year, describing Powell as “very late” and “fool” and argued that “there is no inflation.” On Monday, he sought fire on Lisa Cook, a member of the Federal Reserve Board of Directors in an attempt to gain greater control of the central bank.

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