{
  "id": 4217443,
  "title": "Key inflation gauge remains high; track US economy",
  "url": "https://urgent.news/2026/08/29/key-inflation-gauge-remains-high-track-us-economy",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-29T14:59:39.000Z",
  "source": {
    "name": "The Economic Times",
    "slug": "the-economic-times",
    "url": "https://economictimes.indiatimes.com/news/international/world-news/america-in-focus-key-inflation-gauge-remains-high-fed-kevin-warsh-signals-rate-hikes-may-be-needed-us-news-consumer-confidence-inflation-mortgage-economic-record/articleshow/133614447.cms"
  },
  "original_language": "en",
  "account": "Over the past week, the U.S. economy and inflation have dominated headlines. Grocery store and gas station visits have become more expensive, affecting household and business decisions. A key inflation gauge, the personal consumption expenditures price index, remained high last month, indicating that many Americans are still grappling with higher costs. The Commerce Department reported that prices increased by 3.7% in July compared to a year ago, matching the rise in June. Despite a slight cooling of inflation since the U.S. and Israel's attack on Iran in late February, when inflation stood at 2.9%, the index remains above the Federal Reserve's 2% target.\n\nFederal Reserve Chair Kevin Warsh suggested that interest rates may need to be raised in the coming months to combat inflation. In his first high-profile speech at the Fed's annual conference, Warsh acknowledged that the latest U.S. data show inflation has cooled but emphasized the need for underlying inflation trends to improve significantly. The Fed's next meeting is scheduled for September 15-16.\n\nMeanwhile, American consumer confidence fell to its lowest level in seven months due to ongoing concerns about the economy and rising gasoline prices. The Conference Board's consumer confidence index declined to 89.4 in August from 90.2 in July. While respondents' views of their current situation improved, their short-term outlook worsened. This economic frustration could pose a risk to President Trump and Republicans in the upcoming midterm elections.\n\nThe U.S. economy expanded at a sluggish 1.5% pace from April through June, but consumer spending remained strong. The deceleration in growth was primarily due to a surge in imports, which rose by 12.5% from April through June, partly driven by a surge in shipments of computer chips and other products supporting artificial intelligence investments. These imports subtracted from growth, shaving 1.64 percentage points off the second-quarter GDP growth. Mortgage rates also rose, nudging the average long-term U.S. home loan rate closer to its recent high for the year. Higher mortgage rates can limit homebuyers' purchasing power and potential home sales.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}