U.S. Inflation Concerns Rise Amid Tariff Impacts and Economic Pressures

According to PANews, recent data on the U.S. July Personal Consumption Expenditures (PCE) indicates a rise in service prices, potentially heightening concerns about inflation. This comes as U.S. President Donald Trump's tariff measures continue to affect various economic sectors. While American consumers remain enthusiastic about spending, the sustainability of this growth is uncertain due to rising prices and a weakening job market. Following the data release, stock futures and U.S. Treasury yields narrowed their losses, while the dollar remained strong. Traders still anticipate a rate cut by the Federal Reserve in September. Federal Reserve Chair Jerome Powell, speaking at the annual Jackson Hole meeting, cautiously suggested the possibility of a rate cut next month, citing increasing risks to the job market. He noted that the impact of tariffs on prices is now evident. However, policymakers will receive additional reports on inflation and the labor market before the meeting.