America In Focus: key inflation gauge remains high; Fed's Warsh signals rate hikes may be needed

A closely watched inflation gauge remained elevated in July, reinforcing pressure on the Federal Reserve as Americans continue to feel higher everyday costs. The Commerce Department reported that prices rose 3.7% in July versus a year earlier, unchanged from June, according to the personal consumption expenditures (PCE) price index. That compares with 2.9% after the U.S. and Israel attacked Iran in late February, and it stays above the Fed’s 2% target. Fed Chair Kevin Warsh said inflation is still too high and suggested rate hikes may be needed, with the next Fed meeting set for Sept. 15–16.