August core PCE data supports gradual easing, the Fed's interest rate cut pace will remain unchanged.

On September 26, the U.S. Core PCE inflation for August remained stable, which may allow the Fed to continue its previously set pace for rate cuts. The U.S. Department of Commerce reported on Friday that the PCE price index rose 0.3% month-on-month in August, with an annualized overall inflation rate of 2.7%. Excluding food and energy, the more closely watched Core PCE price index increased 0.2% month-on-month, with an annualized rate of 2.9%. Although the Fed's inflation target is 2%, this data is unlikely to change policymakers' stance – they indicated last week that they expect to make two more 25 basis point rate cuts before the end of the year. ( Jin10 )