"A slow week with little important economic news (other than yesterday's Bureau of Labor Statistics report on falling first-time unemployment filings) got busy in a hurry on Friday, with the U.S. Commerce Department revealing the personal consumption expenditures price index (PCE) increased 0.3% in August. The new data clocks the annual U.S. inflation rate at 2.7%. Volatile food and energy prices, once excluded to give a "core" inflation rate, rose 0.2% to 2.9%."
"Specifically, last night President Trump announced he will be imposing 100% tariffs on branded or patented pharmaceutical imports from manufacturers that are not building factories in the U.S. Those italics are important, however. Nine out of 10 pharmaceuticals imported into the U.S. are unpatented generics, for example, and so will not be hit with higher tariffs. Also, multiple foreign pharmaceutical companies are actively building manufacturing capacity in the U.S., allowing them, too, to do an end-run around the new tariffs."
Personal consumption expenditures (PCE) price index rose 0.3% in August, placing annual U.S. inflation at 2.7%. Volatile food and energy prices pushed the core inflation rate to 2.9%. Actual personal consumption expenditures increased 0.6% while personal income rose 0.4%, each 0.1 percentage point above forecasts, signaling consumers face rising prices faster than incomes. Markets showed limited reaction and expectations for Federal Reserve rate cuts remained intact, with the Vanguard S&P 500 ETF (VOO) up 0.3% premarket Friday. The President announced 100% tariffs on branded or patented pharmaceutical imports from firms not building U.S. factories, a 25% tariff on imported heavy trucks, and a 30% tariff.
Read at 24/7 Wall St.
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