US personal consumption expenditures price index, the Fed's preferred inflation
gauge, showed headline PCE y/y 3.7%, unchanged from June; core PCE y/y 3.3%,
also unchanged. The PCE series uses previously released price data and typically
tracks market expectations. July core CPI was softer at 2.5%, but PCE weights
leave the PCE series notably firmer. The print sharpens the inflation picture
ahead of Fed Chair Kevin Warsh's speech on Friday. Warsh has not submitted his
own economic projections to the quarterly dot plot and has not indicated whether
he would support rate hikes at upcoming meetings, a stance that has contributed
to divisions among Fed officials.
