U.S. July inflation remains sticky, Q2 GDP growth holds at 1.5%

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U.S. July PCE inflation held at 3.7% year-over-year, matching June and missing forecasts of 3.6%. Inflation has remained above the Fed’s 2% target for 65 consecutive months. Q2 GDP growth was confirmed at 1.5%. The stalled decline in inflation may reignite debates over rate hikes, while the breakdown in U.S.-Canada trade relations could elevate inflation through tariffs. Amid rising tensions, BTC as a hedge against inflation is drawing increased attention. The CFT framework is also being monitored for its potential impact on market stability.

ChainThink reports that, according to data from the U.S. Bureau of Economic Analysis, the U.S. PCE price index annual rate for July was 3.7%, unchanged from June and higher than the analyst expectation of 3.6%.

Inflation has remained persistently well above the Federal Reserve’s 2% target for the 65th consecutive month. The annualized growth rate of real GDP in the second quarter held steady at 1.5%, consistent with the prior revision from the Bureau of Economic Analysis.

Due to the war in Iran, the recent decline in inflation from elevated levels has stalled, potentially intensifying internal Fed debates over whether to raise rates or hold them steady. Additionally, U.S.-Canada trade talks collapsed on Friday, raising the prospect of new inflationary pressures from upcoming tariffs.

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