Powell Notes Rising Inflation and Slowing Consumer Spending
Federal Reserve Chair Jerome Powell highlights a 2.7% increase in PCE inflation and a slowdown in consumer spending activity for August.
Fact Check
Multiple sources directly quote or report on statements by Fed Chair Jerome Powell where he acknowledges both a moderation or slowdown in consumer spending and forecasts of higher or rising inflation. Evidence includes direct speech transcripts from the Federal Reserve website and reporting from news outlets on his remarks during 2025. For instance, in March 2025, Powell was quoted saying consumer spending was 'moderating a bit' while the Fed forecasted 'higher inflation'. In an August 2025 speech, he attributed a decline in economic growth to a 'slowdown in consumer spending'.
Summary
Federal Reserve Chair Jerome Powell reports a likely 2.7% year-on-year increase in personal consumption expenditures (PCE) for August, with core PCE rising 2.9%. The report highlights ongoing inflationary pressures amid slowing consumer spending.
Terms & Concepts
- PCE: Personal Consumption Expenditures, a measure of the price changes in consumer goods and services, used by the Federal Reserve to gauge inflation.
- Core PCE: A version of the PCE that excludes food and energy prices, providing a clearer picture of underlying inflation.