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PCE inflation report July 2025:

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Inflation edged higher in July, according to the Federal Reserve’s preferred inflation measure, indicating that President Donald Trump’s tariffs are working their way through the U.S. economy.

The personal consumption expenditures price index showed that core inflation, which excludes food and energy costs, ran at a 2.9% seasonally adjusted annual rate, according to a Commerce Department report Friday. That was up 0.1 percentage point from the June level but in line with the Dow Jones consensus forecast.

On a monthly basis, the core PCE index increased 0.3%, also in line with expectations. The all-items index showed the annual rate at 2.6% and the monthly gain at 0.2%, also hitting the consensus outlook.

The Fed uses the PCE price index as its primary forecasting tool. Though it watches both numbers, policymakers consider core inflation to be a better indicator of longer-term trends as it excludes the volatile gas and groceries figures.

Central bankers target inflation at 2%, so Friday’s report shows the economy still a distance from where the Fed feels comfortable.

Nevertheless, markets expect the Fed to resume lowering its benchmark interest rate when policymakers convene next month. Fed Governor Christopher Waller reiterated his support for a cut in a speech Thursday, saying he would entertain a larger move if labor market data continue weakening.

“The Fed opened the door to rate cuts, but the size of that opening is going to depend on whether labor-market weakness continues to look like a bigger risk than rising inflation,” said Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management. “Today’s in-line PCE Price Index will keep the focus on the jobs market. For now, the odds still favor a September cut.”

Along with the inflation moves, consumer spending increased 0.5% on the month, in line with forecasts and indicative of strength despite the higher prices. Personal income accelerated 0.4%, rounding out a report that saw all figures hit the consensus outlook.

Stock market futures remained negative after the release while Treasury yields held gains.

Inflation numbers were held in check by a 2.7% annual decline in prices for energy goods and services. Food prices rose 1.9% from a year ago. The balance also tilted heavily toward services prices, which jumped 3.6%, compared to just a 0.5% increase on goods.

On a monthly basis, energy was off 1.1% and food was down 0.1%. Services prices rose 0.3%, essentially accounting for all the monthly increase as goods decreased 0.1%.



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SpaceX launches 24 Starlink satellites into polar orbit – Spaceflight Now

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File: A SpaceX Falcon 9 rocket stands in the vertical position at sunset at Space Launch Complex 4 East (SLC-4E) at Vandenberg Space Force Base. Image: SpaceX

Update Aug. 30, 1:15 a.m. EDT: SpaceX landed the booster on the drone ship.

SpaceX launched 24 Starlink broadband satellites from Vandenberg Space Force Base Friday evening on a Falcon 9 rocket launch.

The mission dubbed Starlink 17-7 was the fourth and final Starlink mission to launch from California in August. SpaceX liftoff of its Falcon 9 rocket from Space Launch Complex 4 East occurred at 9:59 p.m. PDT (12:59 a.m. EDT / 0459 UTC).



SpaceX launched its Starlink satellites using the Falcon 9 first stage booster with the tail number B1082, which flew for a 15th time. It previously launched two national security payloads, a batch of OneWeb broadband Internet satellites and 15 previous batches of Starlink satellites.

Nearly 8.5 minutes after liftoff, B1082 landed on the drone ship, ‘Of Course I Still Love You.’ This was the 147th landing on this vessel and the 496th booster landing to date.

Prior to Friday’s launch, SpaceX launched 27 Starlink missions from Vandenberg in 2025 out of a total of 39 Falcon 9 launches. All told, the company launched 106 orbital missions this year as it aims for 170 such launches by year’s end.

SpaceX continues to bolster its low Earth orbit Starlink constellation as it rolls out the service to more countries and territories around the world. According to numbers tracked by astronomer and expert orbital tracker, Jonathan McDowell, there are more than 8,200 Starlink satellites on orbit.



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SCO summit: China’s Xi rolls out the red carpet for Putin and Modi as Trump upends global relations

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Tianjin, China
 — 

Autocrats, populists, friends and foes, a strongman waging a war in Europe and the leader of the world’s biggest democracy will all be hosted by Chinese leader Xi Jinping this weekend at a summit designed to showcase Beijing as a global leader capable of providing a counterweight to Western institutions.

Heads of state and delegations from across Asia and the Middle East will meet from Sunday in the Chinese port city of Tianjin for the two-day summit of the Shanghai Cooperation Organization (SCO), a regional security grouping that has emerged as a cornerstone of Xi and Russian President Vladimir Putin’s drive to rebalance global power in their favor.

Chinese officials have billed the summit as the SCO’s largest yet, with the diplomacy and pageantry setting the stage for Xi to tout his country as a stable and powerful alternative leader at a time when ruling superpower the United States under President Donald Trump is shaking up its alliances and waging a global trade war.

The gathering also comes days ahead of a major military parade in Beijing that will offer a different message – that of China’s rapidly developing military might, and draw autocrats like North Korea’s Kim Jong Un and Myanmar’s Min Aung Hlaing alongside Putin and Russia-friendly European leaders Aleksandar Vucic of Serbia and Slovakia’s Robert Fico.

The summit also gifts Russia’s Putin some international spotlight, just two weeks after his Alaska summit with Trump, and as he continues to ignore international pressure to end his onslaught in Ukraine. Earlier this week Russia’s forces carried out the second-biggest aerial attack since its full-scale invasion of its neighbor.

Ahead of his arrival Putin praised the China-Russia partnership as a “stabilizing force” for the world. In a written interview for Chinese state news agency Xinhua, he said they were “united in our vision of building a just, multipolar world order” – an allusion to the two countries’ efforts to revise what they see as a US-led world order unfairly stacked against them.

SCO members – which include China, Russia, India, Iran, Pakistan, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan – preside over vast swaths of global energy reserves and govern some 40% of the global population.

‘Architect and host’

The guests at the summit have national rivalries between them and vast differences in political systems. And while this has sparked criticism of the group as too disparate to be effective, it also may serve to underscore Xi’s message.

“Beijing wants to signal that China is the indispensable convener in Eurasia, capable of seating rivals at the same table and translating great-power competition into managed interdependence,” said Rabia Akhtar, director of the Centre for Security, Strategy and Policy Research at the University of Lahore in Pakistan.

“The optics are straightforward: China is not just a participant in regional order-making – it is a primary architect and host.”

Modi’s attendance at the gathering also adds heft to Xi’s guest list. The Indian prime minister skipped last year’s summit in Kazakhstan. He now arrives in Tianjin against a backdrop of souring relations with Washington – and as Beijing and New Delhi have moved to ease their own frictions, a nascent realignment that could imperil US efforts to cultivate India as a counterweight against a rising China.

Delegations are also expected from the SCO’s 16 official partner and observer countries, which include Cambodia, Egypt, Saudi Arabia, the United Arab Emirates, Bahrain, Qatar, and Kuwait, as well as NATO member Turkey, among others, Chinese officials said ahead of the gathering.

Beijing additionally invited a handful of Southeast Asian leaders. UN Secretary General Antonio Guterres is also expected to attend.

Across the city of Tianjin, banners in English, Russian and Chinese heralding the gathering lined highways. Officials heavily restricted traffic in the city center as Chinese leaders prepare to welcome their guests with the ceremony and pomp typical of Chinese diplomacy at the highest level.

The location has pointed symbolism for China, as a port that was forced open by colonial powers in the 19th century, with those from Europe and Imperial Japan receiving land concessions – and a key city occupied by Japan during World War II.

Some guests, including Putin, Iranian President Masoud Pezeshkian and Pakistani Prime Minister Shehbaz Sharif, are slated to stay for the military parade in Beijing, where the ruling Communist Party will show off its military might and play up its role fighting Imperial Japan as part of the Allied Forces in World War II as the globe marks 80 years since the end of that war.

Since its formation in 2001 as a group focused on regional security cooperation between China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan, the Shanghai Cooperation Organization has expanded in its size and scope.

SCO members conduct joint counter-terrorism drills, share intelligence on combatting “terrorism, separatism, and extremism,” and work to expand coordination across areas like education, trade and energy. They’re also united in a call for a “just” international order – or one not led by a single superpower and its allies.

Iran’s inclusion in the group in 2023 and Belarus’ a year later have been widely seen as an effort by Beijing and Moscow to the make the body more explicitly anti-West. It also is one facet of a tightening of bonds between Moscow, Beijing and Tehran that’s raised alarm in Washington.

Now, growing frictions and uncertainties between some countries and the US under Trump will loom over the gathering – a reality sure to be referenced prominently if indirectly in remarks by Xi to his guests in the days ahead.

Observers will be watching whether this summit will produce momentum toward further economic integration between member countries, especially when it comes to regional trade or development finance, but expectations for practical developments are low.

“Without deeply addressing what the mission of the Shanghai Cooperation Organization should be and how it can resolve internal sources of conflict both between members and between members with external countries, the SCO is just a showcase,” said Shanghai-based foreign affairs analyst Shen Dingli.

Even as the group regularly calls for “avoiding bloc, ideological or confrontational approaches” to addressing security threats, its summits have yet to produce a joint statement mentioning the war in Ukraine.

SCO – and its lead members China and Russia – also appeared to have little role in de-escalating a four-day conflict between members India and Pakistan earlier this year.

The group did, however, “strongly condemn” the military strikes carried out by the US and Israel on Iran this past June.





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Taylor Townsend is in the US Open spotlight after Jelena Ostapenko argument

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NEW YORK (AP) — Taylor Townsend is in the spotlight at the U.S. Open as a result of an interaction she wishes never took place.

Townsend said Jelena Ostapenko told her she had “no class” and “no education” during a face-to-face argument after their second-round match Wednesday. A huge crowd cheered her on in doubles on Thursday, and Townsend made the most of a spot in prime time at Arthur Ashe Stadium on Friday night, upsetting fifth-seeded Mirra Andreeva 7-5, 6-2.

Going into this Grand Slam, Townsend had nowhere near the star power or the name recognition of fellow Americans Coco Gauff and Jessica Pegula, and she is not even seeded in singles play. Yet the 29-year-old who is half of the top-ranked women’s doubles team in the world and was No. 1 as a junior player has become one of the biggest stories of the tournament through no fault of her own.

“It’s bigger than me,” she said on the court after the match. “It’s about the message, it’s about the representation, it’s about being bold and being able to show up as yourself and I did that tonight. You guys saw the real Taylor Townsend tonight.”

Townsend hopes the attention around the confrontation and her calling attention to it can be a positive for the U.S. Open and tennis in general.

“If I’m someone who can draw huge crowds into the stadiums as a name that can bring people to come and buy tickets and support the game, then that’s a crown that I’ll gladly wear,” Townsend said. “Whatever that it is, whatever type of attention that it brought, it’s doing the right things, which is bring people to see the sport and bringing people in to support and that’s what it’s all about.”

Townsend, who is Black, and Ostapenko, who is from Latvia, had an intense back and forth after Townsend won in straight sets. When asked if she thought the comments had racial undertones, Townsend said she didn’t take it that way but acknowledged, “That has been a stigma in our community of being ‘not educated’ and all of the things, when it’s the furthest thing from the truth.”

Gauff and Naomi Osaka were among those who publicly came to Townsend’s defense. Osaka called what Townsend reported Ostapenko saying “one of the worst things you can say to a Black tennis player in a majority white sport.”

Even privately, Townsend said other players came up to her to broach the subject and express their support. Online, she gained thousands of social media followers.

“It’s cool to know that people see you and people are watching and more than anything,” Townsend said. “I was hoping that it was received a certain type of way, and it was, so it was just external validation that I handled things the right way and that’s what I’m the most proud of and the most happy with. I wasn’t looking for that, and in my answers and when I decided and I spoke and I said what I said I wasn’t looking for those things, but it’s nice to know that I made people proud.”

Townsend is in the fourth round at the U.S. Open, more than a decade after the U.S. Tennis Association decided to hold her out of junior competition over concerns about her fitness. The organization in 2012 withheld funding her tournament appearances while she focused on getting in better shape.

In the intervening time, she has become dominant in doubles, winning Wimbledon last year and the Australian Open earlier this year with partner Katerina Siniakova, and the pair is the top seed in Flushing Meadows.

Townsend, who has not gotten past the fourth round in singles at a major, will face two-time Grand Slam singles champion Barbora Krejcikova on Sunday.

If she reaches the quarterfinals this time, she wants the lesson to be that it is OK to stand up for yourself.

“Sometimes I feel like in society, especially people of color, we are expected to be silenced, or sometimes there are times where we have to decide and be very strategic as to when we speak up, and in these type of moments, it’s important for me to speak up, not only for myself but for my culture,” Townsend said. “No matter what, no matter what attention comes or whatever, I think it’s about being unapologetically yourself, be happy in who you are and never allow anyone to take you out of your character and who you are as a person.”

___

AP tennis: https://apnews.com/hub/tennis





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