The U.S. July Personal Consumption Expenditures (PCE) report reveals rising service prices, further fueling concerns about inflation. President Trump’s tariffs continue to impact businesses across various sectors. While American consumers remain eager to spend, the long-term sustainability of this growth remains uncertain due to escalating prices and a weakening job market. Following the data release, stock futures and U.S. Treasury yields saw some recovery, while the dollar remained strong. Despite these developments, traders anticipate a rate cut by the Federal Reserve in September. Federal Reserve Chair Jerome Powell, speaking at the Jackson Hole meeting, cautiously suggested the possibility of a rate cut next month, citing increased risks to the job market. He specifically pointed out that tariffs’ effect on price increases is now clear. However, policymakers will receive additional reports on inflation and the labor market before the meeting.