BEA

The Fed's dual mandate of inflation and employment is showing signs of tension, as persistent price pressures and aggressive policy adjustments, including new import tariffs, are having a negative impact on consumer spending.

The U.S. Department of Commerce released data on September 27 showing that the U.S. overall PCE price index rose 2.2% YoY in August, the lowest level since February 2021, compared with expectations of 2.3% and the previous reading of 2.5%. With inflationary pressures weakening, the market is warming up to expectations of a sharp rate cut in the future.

Personal income increased $75.1 billion (0.3 percent at a monthly rate) in July, according to estimates released by the U.S. Bureau of Economic Analysis.

On August 6, the U.S. Census Bureau and the U.S. Bureau of Economic Analysis announced that the goods and services deficit was $73.1 billion in June, down $1.9 billion from $75.0 billion in May, revised.