Elevated Core Inflation Should Call for Tighter Policy
Dow Jones07-21 20:53
0853 ET - Despite the cooler-than-expected inflation readings last week, Bank of America is still calling for the Fed to hike rates ahead of July's Fed meeting. BofA analysts say that June core PCE at 3.3% year-over-year likely overstates underlying inflation because it reflects several temporary factors. Excluding those influences, core PCE would still be 2.5% and little changed from a year ago. "In our view, the combination of persistently elevated core inflation and a stable, if not improving, labor market argues for tighter monetary policy rather than an extended pause."(jessica.coacci@wsj.com)
(END) Dow Jones Newswires
July 21, 2026 08:53 ET (12:53 GMT)
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