Fed's Preferred Price Gauge Shows No Need for Rate Hike: Chart

Inflation Ticks Up Slowly, What's Next for Fed?

Negligible inflation, an unemployment rate of 4.9 percent and the lowest labor force participation rate in decades are all indications the U.S. Federal Reserve may bide its time when it comes to the next rate increase. The core measure of U.S. personal consumption expenditures, the Fed’s preferred inflation gauge, has risen to an annualized 1.67 percent, near its average of 1.72 percent since 1999 and below the 2 percent year-on-year increase seen as stable by the Fed. This Friday’s payrolls report will face particular scrutiny as the Fed weighs whether to increase rates next month.

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