by Wolf Richter
Wolf Street
Fed’s Wait-and-See on rate cuts makes sense amid heavily revised whiplashy data and still too high inflation.
The revisions, the upward revisions, oh-la-la! The Bureau of Economic Analysis released today the PCE price index for June; and as part of it, the “core” PCE price index – the Fed’s primary yardstick for inflation – was revised substantially higher for May, driven by a large upward revision of the “core services” PCE price index. So the much-hailed month-to-month core PCE reading a month ago of +1.0% annualized (+0.08% not annualized) was revised up to +1.5% annualized (+0.13% not annualized).