The Consumer Price Index came in at 3.4% year-over-year in July, down from 3.5% in June, while core CPI registered 2.5%, its lowest level in five months. Benchmark 10-year Treasury yields have climbed to the 4.70% to 4.72% range in early August, with the 30-year yield pushing past 5%, representing a rise of more than 100 basis points since late 2024. Real wages adjusted for inflation have shown minimal to no growth, eroding household purchasing power despite nominal increases. The Fed’s room for maneuver is narrowing: core PCE inflation stood at 3.3% in June, well above its 2% target.
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