STOCKS | U.S. Inflation Stays Above Fed Target for 65th Straight Month, Warsh Faces Policy Choice

According to Jin10, Kevin Warsh is under pressure to answer a core question: whether inflation is still a problem and, if so, how to respond. On Thursday, some of Warsh's colleagues shared their concerns that U.S. inflation remains persistent. Data released by the U.S. government on Wednesday showed that U.S. inflation was unchanged in July, marking the 65th straight month it has remained well above the Federal Reserve's 2% target. The Fed's preferred gauge of underlying inflation, the core PCE price index, held at 3.3% year on year in July, while the month-on-month increase rose to 0.2% from 0.1% in June. The stronger-than-expected inflation data slightly increased market expectations that the Fed could raise rates as soon as next month.