BMO analysts said BEA annual benchmark revisions lowered the Fed’s preferred
inflation measure more than expected, though inflation remains well above the
Fed’s 2% target. August core PCE rose less than expected; YoY growth slowed to
3.0% versus consensus 3.3% and the Fed’s 3.2% projection. They note the economy
is still expanding and private‑sector hiring remains robust. BMO said these
factors, together with the downward revision to inflation, somewhat ease the
urgency of another October rate hike.
