Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Tariffs to Checkout Aisles: Inflation’s New Supply Chain

Tariffs to Checkout Aisles: Inflation’s New Supply Chain

ainvest2025/08/29 09:33
By:Coin World

- U.S. core PCE inflation is projected to rise to 2.9% in July, marking three consecutive monthly increases and the highest level since February. - Trump-era tariffs are cited as a key driver of rising goods prices, with costs flowing from ports to consumers through supply chain adjustments. - Services inflation shows upward momentum, complicating Fed policy as persistent price pressures could limit future rate-cut potential. - Markets anticipate an 88% chance of a September rate cut despite inflation rema

The U.S. core Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred inflation gauge, is expected to show a 0.3% month-over-month increase in July, pushing the annual rate to 2.9%—up from 2.8% in June. This would represent the third consecutive month of year-over-year increases, marking the highest level since February. The data is set to be released on Friday, August 29, at 8:30 a.m. EDT. If confirmed, the core PCE inflation rate would remain above the Fed’s 2% target, highlighting ongoing inflationary pressures despite the gradual cooling seen since the summer of 2022 [1].

Economists have linked the continued inflationary uptrend to the Trump administration’s tariff policies, which have led to a steady rise in goods prices. The White House’s imposition of tariffs has resulted in price increases across a range of imported goods, with businesses passing these costs onto consumers as supply chains adjust. Bill Adams, chief economist at Comerica Bank, noted that inflation is now “flowing from the port to the warehouse to the checkout aisle.” The goods price component of the PCE is expected to rise at a monthly pace of 0.35-0.40 percentage points, a significant shift from previous months when these prices were often flat or negative [1].

Services inflation, which is typically more persistent, has also shown signs of upward momentum. Recent data from the Producer Price Index (PPI) indicated rising prices in the services sector, which are not directly affected by tariffs but could be influenced by spillover effects from higher goods prices. A continued uptrend in services inflation could pose a more significant challenge for the Fed, as these price increases tend to be more difficult to reverse. Sam Bullard of Wells Fargo emphasized the importance of monitoring services inflation, stating that a sustained increase could indicate that inflationary pressures are becoming more entrenched than previously anticipated [1].

Despite these inflationary signals, markets remain optimistic about a rate cut by the Fed in September. Following weak July payrolls data and shifting risk balances highlighted by Fed Chair Jerome Powell at Jackson Hole, the probability of a 25-basis-point rate cut at the September 16-17 meeting has risen to about 88%, according to bond futures markets. Powell’s comments suggested that the central bank is more concerned about the downside risks to employment than the current inflation outlook, which has softened the immediate impact of higher inflation expectations. However, some analysts remain cautious, noting that a sustained rise in core PCE inflation could limit the scope for further rate cuts in 2025 [1].

Consumer spending is also under the spotlight, with estimates suggesting a 0.5% increase in July, supported by strong new car sales. However, economists anticipate a cooling trend in the coming months as higher prices and a weaker labor market dampen consumer demand. Jennifer Lee of BMO Capital Markets observed that wage growth has been modest, which could reduce the purchasing power of households and constrain future spending. With trade tensions between the U.S. and China temporarily easing, consumer spending has not yet experienced a sharp decline, but continued inflationary pressures and weaker employment data could alter this trajectory [1].

Analysts remain divided on whether the current inflationary uptrend is a temporary effect of tariffs or a sign of a more persistent shift. Deutsche Bank’s Henry Allen pointed to the prices-paid component in the ISM services index, which has risen to levels historically associated with inflation rates above 4%. This suggests that future inflation could exceed current market expectations, particularly if more tariffs are imposed as part of the ongoing trade agenda. However, inflation swaps markets have yet to fully reflect these risks, raising concerns about potential mispricing and the possibility of a hawkish surprise from the Fed in the coming months [5].

Source: [1] July PCE Forecasts Show Inflation Above Fed's Target [2] What economists are watching for in tomorrow's PCE inflation and spending data [3] What economists are watching for in Friday's PCE inflation and spending data [4] Asia upbeat on Wall St boost as markets await US inflation data [5] Investors are ignoring the coming wave of tariff-driven inflation

Tariffs to Checkout Aisles: Inflation’s New Supply Chain image 0
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Ethereum's $10,000 Potential vs. the High-Yield DeFi Disruption of Mutuum Finance (MUTM): Navigating 2025's Macro and Micro Opportunities

- 2025 crypto market features Ethereum's institutional growth and Mutuum Finance (MUTM)'s DeFi disruption, offering diversified portfolio opportunities. - Ethereum gains from SEC utility token reclassification, $9.4B ETF inflows, and 0.5% annual supply reduction, with analysts projecting $6,400–$12,000+ prices. - MUTM's $0.035 presale (14.29% phase jump) and hybrid P2C/P2P lending model offer 400%+ ROI potential, outpacing meme coins with CertiK-verified security. - Strategic allocation suggests 70% ETH fo

ainvest2025/08/29 12:00
Ethereum's $10,000 Potential vs. the High-Yield DeFi Disruption of Mutuum Finance (MUTM): Navigating 2025's Macro and Micro Opportunities

Behavioral Economics and the Reflection Effect: How Investor Psychology Drives Silver ETF Volatility and Demand

- The iShares Silver Trust (SLV) reflects investor psychology via the reflection effect, where risk preferences shift between gains and losses. - Academic studies (2025) highlight silver's unique duality as both monetary and industrial asset, amplifying behavioral-driven volatility. - Case studies (2020–2025) show panic selling during gains and speculative buying during losses, with UBS projecting a 25.7% price rebound by late 2025. - Structural factors like physical backing and the gold-silver ratio (92:1

ainvest2025/08/29 11:51
Behavioral Economics and the Reflection Effect: How Investor Psychology Drives Silver ETF Volatility and Demand