Analysis: US core PCE annual rate rises slightly, and the debate on the extent of interest rate cuts intensifies

The Fed's preferred core PCE annual rate rose slightly in August, highlighting that the economy is cooling. In addition, real personal consumption expenditures rose 0.1% month-on-month. U.S. Treasury yields and the dollar fell as the market expected the data to allow the Fed to continue to cut interest rates in the coming months, while also intensifying the ongoing debate over the extent of the rate cuts. The Fed chose to cut interest rates by a large 50 basis points this month to start its rate-cutting cycle. Interest rate futures data showed that investors were divided on whether the Fed would take a similar move in November or choose a smaller move. (Jin Shi P)