PCE Inflation Indicator Sees Largest Monthly Increase Since April

According to Odaily, the Federal Reserve's preferred PCE inflation indicator experienced its largest monthly increase since April, supporting the Fed's decision to slow down the pace of rate cuts after a significant reduction last month. The core PCE price index in the United States rose by 0.3% in September, with the annual PCE price index at 2.1%, the lowest level since early 2021, slightly above the Fed's 2% target. Consumer spending, adjusted for inflation, increased by 0.4%, supported by a 0.1% rise in real income. The savings rate dropped to 4.6%. The data released tonight concludes a month of unexpected upward trends in major economic reports, which may indicate that the Federal Reserve will adopt a cautious approach to rate cuts in the coming months. The market widely expects the Fed to implement a second rate cut in November, following the first rate cut in September.