Stocks fluctuated as traders awaited Powell’s speech. Treasury 10-year rates remained above 3%, while the dollar retreated.
The latest data showed that inflation-adjusted spending on both goods and services each rose 0.2%. However, the advance in goods was driven entirely by outlays on durable goods -- items like appliances and cars -- while spending on nondurables declined for a second month.
The consumer price index, which typically runs hotter than the PCE price index, also decelerated in July, to 8.5% year-over-year. Powell said last month that the PCE gauge is a better measure as it more accurately captures the inflation that people actually face in their lives.
Unadjusted for inflation, spending edged up 0.1% from the prior month. The overall income figure posted a soft 0.2% gain, dragged by a drop in earnings that people make from self-owned businesses.
A report later this morning is expected to show US consumer sentiment improved in August.
--With assistance from Olivia Rockeman.
This article was provided by Bloomberg News.