Inflation is still running above the Federal Reserve’s target level of 2%. The Personal Consumption Expenditures (PCE) Price Index, the assessment of inflation most closely watched by the Fed, and the core PCE (excludes food and energy) rose 0.2% and 0.3%, respectively, in July. On a 12-month basis, the PCE and core PCE increased 2.6% and 2.9%. While the figures came in as forecast, they indicate that the pace of price growth is still too...

The Federal Reserve appears on track to resume cutting the benchmark short-term interest rate for its lending to banks at this month’s Federal Open Market Committee (FOMC) meeting. At the annual Jackson Hole, Wyoming Economic Symposium in late August, Chairman Jerome Powell said the Fed will “proceed cautiously,” as both inflation and potentially greater unemployment remain concerns. Mr. Powell noted that the shifting balance of risks (to unemployment levels, prices, and economic growth) may warrant...

The July price data painted a mixed picture on inflation. On the positive side, the Consumer Price Index (CPI) was relatively in line with the consensus forecast and overall benign. Conversely, the Producer Price Index (PPI) came in very hot, with the PPI and core PPI, which excludes the food and energy components, jumping 0.9% and 0.6%, respectively, on a month-to-month basis, suggesting that the Trump tariffs may be leading to an uptick in inflation...