AI Spending, Tariffs, Energy Seen Among U.S. Inflation Drivers

Dow Jones13:59

0559 GMT - When thinking about the factors that drive inflation these days, it mostly boils down to AI spending, tariffs and energy, the Schwab Center for Financial Research's Kevin Gordon says. "The goods sector is where the latter two forces show up most, and here you can see how much the dynamic has changed over the past couple years," the head of macro research says after Wednesday's U.S. PCE data. In a posttariff world, it has been rare to see goods deflation--especially in the durable sector, which has historically mostly been in deflation territory, he says. "On the services side, it's normal to see inflation in any expansion; for now, it's the 'good' kind given the resilience in the sector and how much that is helping aid GDP growth."

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment