PCE price index rose 0.2% in July, matching expectations
Consumer spending rose 0.5% in July
Market focus shifts towards jobs and labor over inflation
(Updated at 2:17 p.m. ET/1817 GMT)
NEW YORK, Aug 30 (Reuters) – U.S. Treasury yields advanced on Friday, with the benchmark 10-year note set to snap a two-week streak of declines, after economic data raised expectations the Federal Reserve was likely to opt for a small rate cut at its September meeting.
The Commerce Department said the personal consumption expenditures (PCE) price index rose 0.2% last month, matching expectations of economists polled by Reuters, after an unrevised 0.1% gain in June. In the 12 months through July, the PCE price index increased 2.5%, matching June’s gain.
“Income and spending were a little better than expected while inflation was in line with expectations. This can reinforce the idea that the Fed has stuck the landing,” said Brian Jacobsen, chief…
