Key Fed inflation gauge shows no relief for squeezed families

Published

2 years ago

September 1, 2023

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An inflation measure closely watched by the Federal Reserve ticked higher in July as steep prices continue to squeeze millions of US households.

The personal consumption expenditures (PCE) index showed that consumer prices rose 0.2% from the previous month, according to the Commerce Department.

On an annual basis, prices climbed 3.3% — up from 3% the previous month, underscoring the challenge oftaming high inflation.

The figures were both in line with estimates from Refintiv economists.

Core prices, which strip out the more volatile measurements of food and energy, climbed 0.2% from the previous month and 4.2% from the previous year.

While the Fed is targeting the PCE headline figure as it tries to wrestle consumer prices back to 2%,Chair Jerome Powellpreviously told reporters that core data is actually a better indicator of inflation.

Both the core and headline numbers point to inflation that is still running above the Fed’s preferred 2% target.

“The PCE index has been moving in the right direction overall, but core inflation remains stickier than expected keeping the data dependent and agile Fed more likely to raise rates again this year,” said Quincy Krosby, chief global strategist for LPL Financial.

Other figures included in the report showed that consumer spending jumped 0.8% in July, compared with a 0.6% increase in June.

Still, many economists anticipate that spending will slow in coming months as spenders continue to grapple with expensive goods, high interest rates and the resumption of federal student loan payments.

“Consumers spent freely in July even if it meant dipping into their savings amid slower income growth,” said Gregory Daco, EY chief economist. “We anticipate the trend will slow in August and September as elevated prices for goods and services, higher borrowing costs and moderating income limit consumers spending appetite.”

Stocks climbed Thursday morning as the report fueled investor hopes for a rate pause.

The Fed in July approved another interest rate hike, lifting the benchmark rate to the highest level since 2001.

Powell signaled last week that additional rate hikes may be on the table this year as policymakers assess whether high inflation has retreated for good.

“Although inflation has moved down from its peak a welcome development it remains too high,” he said. “We are prepared to raise rates further if appropriate, and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective.”

World

White House considering inviting Zelenskyy to Trump-Putin meeting in Alaska – reports

Published

3 hours ago

August 9, 2025

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White House considering inviting Zelenskyy to Trump-Putin meeting in Alaska - reports

The White House is considering inviting Volodymyr Zelenskyy to a meeting between Donald Trump and Vladimir Putin in Alaska, according to reports in the US.

The reports come a day after Washington and Moscow confirmed the US and Russian presidents will meet on Friday to discuss bringing about an end to the war in Ukraine.

A senior US official and three people briefed on internal discussions have told Sky News’ US partner network NBC News that the Trump administration is now considering inviting the Ukrainian president to the summit.

“It’s being discussed,” one of the people briefed on the talks was quoted as saying.

The sources said a visit by Mr Zelenskyy has not been finalised – and it is unclear whether the Ukrainian leader will be in Alaska for the summit.

However, the senior administration official said it is “absolutely” possible.

“Everyone is very hopeful that would happen,” the official said.

Asked whether the US had officially invited Mr Zelenskyy to Alaska, a senior White House official said: “The President remains open to a trilateral summit with both leaders. Right now, the White House is focusing on planning the bilateral meeting requested by President Putin.”

Mr Trump told reporters at the White House on Friday before the Alaska summit was confirmed that “we’re getting very close to a deal” that would end the war.

The US president added there will be “some swapping of territories to the betterment of both sides”.

Zelenskyy suggests he’s unwilling to give up territory

However, the Ukrainian president warned on Saturday that allowing Russia to keep territory it has occupied in Ukraine will result in another invasion.

He said allowing Mr Putin to annex Crimea in 2014 didn’t prevent Russia forces from occupying more parts of Ukraine during the current conflict.

Mr Zelenskyy added: “Now, Putin wants to be forgiven for seizing the south of our Kherson region, Zaporizhzhia, the entire territory of Luhansk and Donetsk regions, and Crimea. We will not allow this second attempt to partition Ukraine.

“Knowing Russia – where there is a second, there will be a third.”

NATO allies say Ukraine must be involved in negotiations

The reports Mr Zelenksyy could be invited to Alaska come as Ukraine and several NATO allies have reportedly been privately concerned Mr Trump might agree to Mr Putin’s proposals for ending the war without taking their positions into account.

In a joint statement on Saturday night, UK Prime Minister Sir Keir Starmer and the leaders of France, Italy, Germany, Poland, Finland and the European Commission said Ukraine’s future cannot be decided without Kyiv.

They said: “Ukraine has the freedom of choice over its own destiny. Meaningful negotiations can only take place in the context of a ceasefire or reduction of hostilities.

“The path to peace in Ukraine cannot be decided without Ukraine.

“We remain committed to the principle that international borders must not be changed by force.

“The current line of contact should be the starting point of negotiations.”

Read analysis:
Lifting sanctions a ‘massive victory for Moscow’
Stakes high for Alaska summit as Zelenskyy faces nightmare deal
Why Trump will have a lot of ice to break at Alaska summit

UK hosts Ukrainian officials ahead of summit

British Foreign Secretary David Lammy had earlier hosted a meeting of top Ukrainian officials and European national security advisers alongside US vice-president JD Vance on Saturday ahead of the Trump-Putin meeting.

The meeting took place at the foreign secretary’s official country retreat, Chevening, in Kent, where Mr Vance is staying at the start of a UK holiday.

After the meeting, Mr Lammy said: “The UK’s support for Ukraine remains ironclad as we continue working towards a just and lasting peace.”

It is understood that the meeting had been called at Washington’s request, and included representatives from the US, Ukraine, France, Germany, Italy, Finland and Poland as well as the UK.

Ukraine was represented by Rustem Umerov, secretary of the country’s national security and defence council, and the head of Mr Zelensky’s office, Andriy Yermak.

In a post on social media, Mr Yermak said the allies’ positions were “clear” that “a reliable, lasting peace is only possible with Ukraine at the negotiating table, with full respect for our sovereignty and without recognising the occupation”.

Ahead of the meeting at Chevening, Sir Keir discussed the talks in a call with Mr Zelenskyy on Saturday and also spoke to French President Emmanuel Macron.

A Downing Street spokeswoman said Sir Keir and Mr Macron “discussed the latest developments in Ukraine, reiterating their unwavering support for President Zelenskyy and to securing a just and lasting peace for the Ukrainian people”.

Environment

BYD is coming with a ridiculous 3,000 hp electric supercar

Published

4 hours ago

August 9, 2025

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BYD is coming with a ridiculous 3,000 hp electric supercar

New filings have revealed that BYD is about to release a ridiculous 3,000 hp electric supercar: the Yangwang U9 Track Edition.

BYD already shocked the world when it launched the Yangwang U9, its first all-electric supercar.

It featured four advanced electric motors with a combined power of nearly 1,300 horsepower. The U9 can accelerate from 0 to 62 mph (0 to 100 km/h) in just 2.36 seconds.

With a motor at each wheel and a highly advanced electric-air suspension, the U9 can turn on itself and even jump over potholes.

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But that was only the beginning.

Based on a new filing with the Ministry of Industry and Information Technology (MIIT), BYD is preparing to launch a new ‘Track Edition’ of the Yangwang U9:

When an automaker releases a “track” version of a car, it typically primarily features body changes for better aerodynamic performance, adding downforce, and it will also often feature bigger brakes.

The Yangwang U9 ‘Track Edition’ appears to feature all that… and much more.

The filing reveals that BYD updated the motors at each wheel to a new 555 kW motor. That’s a higher-performing motor than in most performance electric vehicles. The U9 Track Edition has four of them for a total of 2,220 kW (3,019 hp).

I would have thought that this was a typo if it wasn’t for the insane electric vehicles coming out of China these days.

Here are a few pictures from the MIIT filing:

There are a lot of performance specs that are not included in the MIIT filing. Therefore, it will be interesting to see when the vehicle is fully unveiled and BYD reveals what kind of performance it can achieve with 3,000 hp packed in 4 electric motors.

Here are a few other features mentioned in the filing:

Standard features: