My friends, the growth rate of inflation and consumer spending in the United States in August did not meet expectations. In terms of inflation, PCE inflation and core PCE are slightly lower than expected. To break it down, commodity inflation is falling, and service inflation is rising and falling. The PCE indicator that the Federal Reserve attaches great importance to shows that inflation is getting closer and closer to the 2% target, and it has dropped a lot compared with the previous year and the previous two years.

PCE consumer spending in August was a little lower than expected month-on-month, but it still grew year-on-year, and actual consumer spending was slightly higher year-on-year than before. But personal income is a little lower month-on-month and year-on-year, and the savings rate has also declined.

In general, tonight's data is not bad. US inflation continues to cool down, consumers are still spending to support the economy, and the growth rate is slowing down, which can be regarded as a soft landing; the downside is that consumer spending is slightly lower than expected, and income has slowed down, and the savings rate has declined, which may put pressure on consumption for the rest of the year.  

Currently, interest rate futures suggest that the Federal Reserve will continue to cut interest rates by 50bp in November.