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 h

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.