US core PCE inflation cools to 3.0% y/y in Aug, below expectations

The US Bureau of Economic Analysis reported that the core PCE price index rose 0.2% m/m in August with the annual rate at 3.0%, down from prior revised levels and missing expectations of 3.3%; headline PCE rose 0.3% m/m for a 3.4% y/y rate. Real consumer spending jumped 0.6% m/m, the strongest in over a year, while Fed's Williams said there is no urgency for an October rate hike, lowering odds to around 50%.