U.S. July PCE Rises 3.7% Year-over-Year, Devere Group CEO Warns of Stagflation Risk

Odaily Planet Daily News According to data released by the U.S. Bureau of Economic Analysis (BEA), the Personal Consumption Expenditures (PCE) price index rose 0.2% month-over-month and 3.7% year-over-year in July; excluding food and energy, core PCE rose 0.2% month-over-month, with inflation still above the Federal Reserve's 2% target.

Nigel Green, CEO of global financial advisory firm Devere Group, stated that the U.S. economy is flashing a stagflation warning, with economic growth stalling while inflation refuses to subside. He noted that the Federal Reserve faces difficulty in simultaneously raising interest rates to curb inflation and cutting rates to support growth, and expects the federal funds rate to remain unchanged.

Following the release of the PCE data, major U.S. stock indices opened higher, gold prices fell to $4,626 per ounce, and silver dropped to $68.31. Bitcoin traded within a range of $77,250 to $79,539 over 24 hours, and was trading at $77,600 at 11:00 a.m. Eastern Time on Wednesday. (Bitcoin.com News)