U.S. July PCE rises 3.7% year-over-year, Devere Group CEO warns of stagflation risk

The Odaily Planet Daily reports that data released by the U.S. Department of Commerce's Bureau of Economic Analysis (BEA) shows the Personal Consumption Expenditures Price Index (PCE) rose 0.2% month-over-month in July, up 3.7% year-over-year. Excluding food and energy, core PCE increased by 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 signaling a stagflation warning, with economic growth stalling while inflation refuses to decline. 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 in the range of $77,250 to $79,539 over 24 hours, and was trading at $77,600 at 11:00 AM Eastern Time on Wednesday. (Bitcoin.com News)