Latest news with #ScottHelfstein
Yahoo
01-08-2025
- Business
- Yahoo
Inflation rises, affirming Fed decision to hold benchmark rate steady
This story was originally published on CFO Dive. To receive daily news and insights, subscribe to our free daily CFO Dive newsletter. Dive Brief: Inflation picked up in June, the Bureau of Economic Analysis said Thursday, a day after Federal Reserve policymakers decided, in a vote with two dissents, to hold the main interest rate steady rather than risk pushing up prices with a rate cut. The personal consumption expenditures price index rose at an annual 2.6% rate in June compared with 2.4% in May, the bureau said. Core PCE, a measure excluding volatile food and energy prices and preferred by the Fed, increased at a 2.8% annual rate, well above the central bank's long-term inflation goal of 2%. 'The Fed got validation this morning with PCE coming in a little higher than expected,' Scott Helfstein, head of investment strategy at Global X, said in a client note. 'Healthcare, housing and utilities continue to be key sources in driving inflation,' he said. Dive Insight: Tariffs set this year by the Trump administration prompted consumers to limit spending in June, EY-Parthenon Chief Economist Gregory Daco said in a client note. 'There was ample evidence of tariff-induced consumer caution with inflation adjusted spending on goods up only 0.07% and spending on services up a meager 0.05%,' Daco said, citing data released Thursday. Weak consumption highlights the risks to economic growth from the Fed's decision to forgo a reduction in borrowing costs until the inflationary impact of import duties is clear, according to economists. 'The combination of tariff-related cost increases, persistent policy uncertainty, curtailed immigration and elevated interest rates is expected to further weigh on employment, business investment and household consumption,' Daco said. Uncertainty over shifts to trade and other federal policies slowed economic growth to an annual rate of 1.2% during the first six months of 2025, or less than half the pace of last year. Fed Chair Jerome Powell on Wednesday sought to dispel the notion that monetary policy is weighing on growth, an assertion made in the past several weeks by President Donald Trump. Policymakers have held the federal funds rate at a range between 4.25% and 4.5% for five consecutive meetings. 'The economy is not performing as if a restrictive policy is holding it back,' Powell said in a post-meeting press conference. Trump redoubled his criticism of the Fed on Thursday, lashing out at Powell for not reducing borrowing costs. 'Jerome 'Too Late' Powell has done it again!!!' Trump said in a social media post. 'He is TOO LATE, and actually, TOO ANGRY, TOO STUPID, & TOO POLITICAL, to have the job of Fed Chair.' Powell "is costing our Country TRILLIONS OF DOLLARS,' Trump said, reiterating his assertion that a reduction in the federal funds rate would trim interest payments on spiraling federal debt. Trump by the end of 2025 will be able to announce a replacement for Powell, whose term as Fed chair expires in May, Treasury Secretary Scott Bessent said Thursday. 'We are putting together a very good list of candidates,' Bessent said, adding that Powell would break with tradition if he remains on the Fed's policymaking body until his tenure as a governor expires in 2028. It would be 'highly unusual for a chair to stay on,' Bessent said in a CNBC interview. Recommended Reading Services spur growth as coming election jars business confidence: S&P Sign in to access your portfolio
CBS News
31-07-2025
- Business
- CBS News
PCE report shows U.S. inflation rose last month as Trump's tariffs boosted some prices
The Federal Reserve's preferred inflation measure — the Personal Consumption Expenditures, or PCE — ticked higher last month, signaling that President Trump's tariffs are pushing some prices higher. Prices rose 2.6% in June compared with a year ago, the Commerce Department said Thursday, up from an annual pace of 2.4% in May. Excluding the volatile food and energy categories, prices rose 2.8% in the past year, the same as the previous month, which was revised higher. The figures help illustrate the central bank's reason for its decision Wednesday to keep its key interest rate steady, with Federal Reserve Chairman Jerome Powell stressing that inflation still remains above the Fed's goal of a 2% annual rate. Powell suggested it could take months for the central bank to determine whether the president's new import duties would cause just a one-time rise in prices, or a more persistent increase in inflation. "The Fed got validation this morning with inflation coming in a little higher than expected," noted Scott Helfstein, head of investment strategy at Global X in an emailed comment. "There is some evidence of tariff impact in the inflation data, but it remains modest. Health care, housing and utilities continue to be key sources in driving inflation." On a monthly basis, prices ticked up 0.3% from May to June, while core prices also rose 0.3%. Both figures are higher than what would be consistent with the 2% target. On Wednesday, the Fed kept its benchmark interest rate unchanged, citing elevated uncertainty over the nation's economic outlook and inflation that remains higher than its 2% annualized goal. The central bank last cut rates in December 2024, prior to Mr. Trump's January inauguration. Mr. Trump has been pressuring Powell to cut rates, arguing that lower rates are justified because inflation remains tame and that other nations have been cutting their benchmark rates this year. Nevertheless, the majority of the Fed's 12-person Federal Open Market Committee, or FOMC, the 12-person central bank's rate-setting panel, voted on Wednesday to maintain rates in the range of 4.25% to 4.5%, although there were two dissenting votes in favor of a cut. The rise in the PCE's inflation data may lessen the likelihood of a rate cut at the Fed's September meeting, said Harry Chambers, assistant economist at Capital Economics, a forecasting firm. "The above-target rise in core prices in June, upward revisions to previous months' data and the sharp rise in core goods inflation will do little to ease the Fed's concerns about tariff-driven inflation," Chambers said. The government's measure of gas prices jumped 0.9% from May to June, while grocery costs rose 0.3%. Many longer-lasting goods that are heavily imported saw clear price increases, with furniture prices up 1.3% just last month, appliances up 1.9%, and computers up 1.4%. The cost of some services fell dramatically last month, offsetting some of the price pressures from goods. Air fares dropped 0.7% from May to June, while the cost of hotel rooms plunged 3.6% just in one month. Thursday's report also showed that consumer spending rose 0.3% from May to June, a modest rise that suggests Americans are still spending cautiously. Adjusted for inflation, the increase was just 0.1%, the government said. Americans' incomes also saw a modest increase, rising 0.3% last month, a rebound after a 0.4% drop in May. Adjusted for inflation and taxes, however, incomes were flat in June. Consumers have been cautious all year. On Wednesday, the government said the economy expanded at a 3% annual rate in the second quarter, a solid showing but one that masked some red flags. Consumer spending, for example, rose at a lackluster 1.4% pace, after an even smaller gain of 0.5% in the first three months of the year. A sharp drop in imports in the April-June quarter, which followed a surge in the first quarter, provided a big lift to the government's calculation of U.S. gross domestic product. Earlier this month, the government reported that its more closely watched Consumer Price Index, its primary inflation measure, also ticked higher in June as the cost of heavily imported items such as appliances, furniture and toys increased.
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Malaysian Reserve
23-07-2025
- Business
- Malaysian Reserve
Global X Launches PureCap[SM] Product Suite to Provide Uncapped Sector ETF Exposure
The new suite of ETFs seeks to deliver true market capitalization exposure across five key sectors, addressing rising market concentration trends NEW YORK, July 23, 2025 /PRNewswire/ — Global X Management Company LLC ('Global X'), the New York-based provider of exchange-traded funds (ETFs), today announced the launch of its PureCapSM Suite, a new collection of five sector ETFs providing uncapped, pure market capitalization weighted exposure across the consumer discretionary, communication services, information technology, consumer staples and energy sectors. The launch reflects heightened investor demand for refined sector allocation solutions, driven by growing concentration within five sectors which can impact funds due to regulatory weighting limits. The PureCapSM ETFs apply implementation techniques, including representative sampling, attempting to mimic the index exposure without reducing exposure to leading companies within each sector. This approach may help investors capture the full potential of sectors where uncapped indexes may provide differentiated performance versus capped indexes. 'Investors often think they're getting true sector exposure, but traditional funds limit exposure to the largest companies causing investors' performance to potentially diverge from the true performance of the sector,' said Scott Helfstein, Head of Investment Strategy at Global X. Scott continued, 'these products provide investors a different way to gain sector exposure, aligning their portfolios with how markets have evolved and potentially capturing the upside of the largest stocks in the sector.' The funds seek to capture sector leadership by aligning with the true weight of each sector's largest constituents while benefiting from the potential tax efficiency, liquidity and systematic rebalancing of an ETF. Fund Details Fund Name and Ticker Tracking Index ExpenseRatio Exchange CUSIP / ISIN Global X PureCapSM MSCIConsumer Discretionary ETF(GXPD) MSCI USAConsumerDiscretionaryIndex 0.25 % NYSE Arca 37960A313 / US37960A3133 Global X PureCapSM MSCICommunication Services ETF(GXPC) MSCI USACommunicationServices Index 0.25 % NYSE Arca 37960A297 / US37960A2978 Global X PureCapSM MSCIInformation Technology ETF (GXPT) MSCI USAInformationTechnology Index 0.25 % NYSE Arca 37960A289 / US37960A2895 Global X PureCapSM MSCIConsumer Staples ETF (GXPS) MSCI USAConsumer StaplesIndex 0.25 % NYSE Arca 37960A271 / US37960A2713 Global X PureCapSM MSCI EnergyETF (GXPE) MSCI USA EnergyIndex 0.25 % NYSE Arca 37960A263 / US37960A2630 About Global X Global X was founded in 2008. For more than fifteen years, our mission has been empowering investors with unexplored and intelligent solutions. Our product lineup features a wide range of ETF strategies and over $60 billion in assets under management.[i] While we are distinguished for our Thematic Growth, Income and International Access ETFs, we also offer Core, Commodity, and Risk Management funds to suit a wide range of investment objectives. Explore our ETFs, research and insights, and more at Global X is a member of Mirae Asset Financial Group, a global leader in financial services, with more than $600 billion in assets under management worldwide.[ii] Mirae Asset has an extensive global ETF platform ranging across the US, Brazil, Canada, Colombia, Europe, Hong Kong, India, Japan, Korea, and Vietnam. Important Information This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information is not intended to be individual or personalized investment advice and should not be used for trading purposes. Please consult a financial advisor professional for more information regarding your investment situation. Investing involves risk, including the possible loss of principal. Investments concentrated in a particular sector tend to be more volatile than the overall market. The PureCapSM ETFs are non-diversified. Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Carefully consider the funds' investment objectives, risks, and charges and expenses before investing. This and other information can be found in the funds' full or summary prospectuses, which may be obtained at Please read the prospectus carefully before investing Global X Management Company LLC serves as an advisor to the Global X Funds. The Fund is distributed by SEI Investments Distribution Co. (SIDCO), which is not affiliated with Global X Management Company LLC or Mirae Asset Global Investments. Global X Funds are not sponsored, endorsed, issued, sold or promoted by MSCI, nor does MSCI make any representations regarding the advisability of investing in the Global X Funds. Neither SIDCO, Global X nor Mirae Asset Global Investments are affiliated with MSCI. Media Contact: Ariel Kouvaras, Sloane PR212-446-1884akouvaras@ [i] Source: Global X ETFs, as of July 8, 2025[ii] Source: Mirae Asset, as of December 31, 2024
Yahoo
30-05-2025
- Business
- Yahoo
Inflation keeps falling despite tariff clamor
Prices are cooling even though President Trump's trade war is dragging on and businesses keep threatening to raise their prices in response to it. The personal consumption expenditures (PCE) price index fell to a 2.1-percent annual increase in April, down from 2.3 percent in March and 2.6 percent in April, the Commerce Department reported Friday. Removing the more volatile categories of food and energy, PCE prices fell to a 2.5-percent increase. 'The impact of tariffs is once again missing from the inflation report,' Scott Helfstein, head of investment strategy at financial company Global X, said in a commentary. 'Each month we keep trying to assess whether tariffs are going to drive inflation higher, but the pauses keep pushing the prospect of higher prices further out,' he wrote. White House trade policy went through another major turnaround this week. Trump's wide-ranging emergency tariff powers, encompassing his national security tariffs and novel 'reciprocal' tariffs, were struck down by a court Wednesday before immediately being reinstated by a higher court Thursday. Cooling PCE inflation follows a similar pattern in the consumer price index (CPI), another pricing benchmark. After ticking up through the fall, the CPI has fallen throughout the first quarter of this year, dropping down to a 2.3-percent annual increase from 3 percent in January. U.S. consumers and businesses are showing themselves to be highly attuned to all the policy changes, which are coming fast and furious from the White House. After Trump's trade war tanked consumer and business sentiment earlier this year, importers executed a massive pull-forward in orders, leading to a 0.3-percent contraction in first-quarter gross domestic product (GDP). Consumers followed suit, increasing spending on automobiles by a whopping 57 percent in March ahead of expected tariffs. Now, just as businesses are holding off on making investments and capital expenditures, consumers are holding off on making purchases amid continued policy fluctuations. The April PCE report showed spending increasing by just 0.2 percent last month, while the personal saving rate increased to 4.9 percent from 4.3 percent in March. 'There is clear evidence that consumers are battening down the hatches, with data showing the highest savings rate since May 2024. However, robust disposable income growth bodes well for future spending,' Olu Sonola, head of U.S. economic research at Fitch Ratings, commented. Sustained hesitance from consumers in response to policy ambiguity could work against the many inflationary prognostications now swirling about the economy, driving down price pressures even as tariffs threaten to raise them. The minutes of the latest Federal Reserve meeting painted a stagflationary picture of the economy, with bankers voicing concerns about higher prices, lower output levels and increased unemployment. 'Tariffs were expected to boost inflation markedly this year,' the minutes say – an increase that has yet to materialize. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
30-05-2025
- Business
- The Hill
Inflation keeps falling despite tariff clamor
Prices are cooling even though President Trump's trade war is dragging on and businesses keep threatening to raise their prices in response to it. The personal consumption expenditures (PCE) price index fell to a 2.1-percent annual increase in April, down from 2.3 percent in March and 2.6 percent in April, the Commerce Department reported Friday. Removing the more volatile categories of food and energy, PCE prices fell to a 2.5-percent increase. 'The impact of tariffs is once again missing from the inflation report,' Scott Helfstein, head of investment strategy at financial company Global X, said in a commentary. 'Each month we keep trying to assess whether tariffs are going to drive inflation higher, but the pauses keep pushing the prospect of higher prices further out,' he wrote. White House trade policy went through another major turnaround this week. Trump's wide-ranging emergency tariff powers, encompassing his national security tariffs and novel 'reciprocal' tariffs, were struck down by a court on Wednesday before immediately being reinstated by a higher court on Thursday. Cooling PCE inflation follows a similar pattern in the consumer price index (CPI), another pricing benchmark. After ticking up through the fall, the CPI has fallen throughout the first quarter of this year, dropping down to a 2.3-percent annual increase from 3 percent in January. U.S. consumers and businesses are showing themselves to be highly attuned to all the policy changes, which are coming fast and furious from the White House. After Trump's trade war tanked consumer and business sentiment earlier this year, importers executed a massive pull-forward in orders, leading to a 0.3-percent contraction in first-quarter gross domestic product (GDP). Consumers followed suit, increasing spending on automobiles by a whopping 57 percent in March ahead of expected tariffs. Now, just as businesses are holding off on making investments and capital expenditures, consumers are holding off on making purchases amid continued policy fluctuations. The April PCE report showed spending increasing by just 0.2 percent last month while the personal saving rate increased to 4.9 from 4.3 percent in March. 'There is clear evidence that consumers are battening down the hatches, with data showing the highest savings rate since May 2024. However, robust disposable income growth bodes well for future spending,' Olu Sonola, head of U.S. economic research at Fitch Ratings, commented. Sustained hesitance from consumers in response to policy ambiguity could work against the many inflationary prognostications now swirling about the economy, driving down price pressures even as tariffs threaten to raise them. The minutes of the latest Federal Reserve meeting painted a stagflationary picture of the economy, with bankers voicing concerns about higher prices, lower output levels, and increased unemployment. 'Tariffs were expected to boost inflation markedly this year,' the minutes say – an increase that has yet to materialize.
