Personal consumption expenditures price index increases 4.7% YoY

 

The core personal consumption expenditures price index has increased 4.7% YoY, signaling that the Fed could take more fiscal measures to lower inflation.  Wall Street's estimate was 4.4%. Consumer spending increased more than expected, at 1.8% for the month compared to the 1.4% estimate. The Federal Reserve has raised rates by 4.5 percentage points since March 2022 as inflation in the U.S. has reached its highest level since the 1980s. Food prices have increased 11.1% YoY, while energy prices have increased 9.6% during the same period. Following this news, the Dow Jones Industrial Average fell by 500 points. Many Wall Street executives, such as JP Morgan's Jamie Dimon, have criticized the Federal Reserve. Dimon recently stated that the Fed has lost control over inflation by implementing drastic measures and overreaching. These measures could cause a recession, according to Dimon. The Chair of the Federal Reserve, Jerome Powell, has recently stated that the institution is likely to increase rates even more in order to lower inflation.