US July Consumption and Inflation Both Rise, Weak Employment Data May Prompt Fed Rate Cut

According to ChainCatcher, citing Golden Ten Data, U.S. consumer spending showed robust growth in July, and core PCE heated up as import tariffs drove up the prices of some goods. However, a softening labor market may not prevent the Federal Reserve from cutting interest rates next month. Although a low layoff rate supports wage growth, Trump's tariff policy on imported goods has increased business costs, making employers reluctant to hire more staff. Government reports show that in the three months ending in July, the average monthly increase in employment was 35,000, far below the 123,000 during the same period in 2024.