Fed mouthpiece: The Fed's preferred PCE index is not far from the Fed's target

Nick Timiraos, the "Fed mouthpiece," said the Fed's preferred inflation indicator, the personal consumption expenditure index (PCE), showed that the index rose 2.2% in the 12 months ending in August, not far from the Fed's 2% target. A year ago and two years ago, this indicator was 3.4% and 6.6%, respectively. Core PCE (excluding volatile food and energy items) rose 2.7% year-on-year in August. The core inflation rate for the 12 months a year ago was 3.8%, and two years ago it was 5.4%. (Jinshi)