- U.S. core inflation, the Federal Reserve’s preferred measure, rose at a moderate pace in June as consumer spending remained strong, a positive sign that policymakers are trying to rein in inflation without hurting the economy, according to Bloomberg.
- Data from the Bureau of Economic Analysis released on Friday showed that the core consumer price index, which excludes volatile food and energy prices, rose 0.2% from May, and rose 2.6% on an annual basis.
- Real consumer spending adjusted for inflation increased by 0.2%, while May data was revised upward.
- U.S. economic growth accelerated more than expected in the second quarter, showing that demand is holding up despite higher borrowing costs.
- Treasury bond prices rose and stock futures continued to climb after inflation data came in as expected, even after quarterly data released last Thursday showed that the previous numbers may have been revised upward.
- The inflation figures provide some encouraging evidence that the Federal Reserve's monetary tightening approach is starting to work in the economy without causing much damage.
