🚨PCE Headline: 3.7% vs 3.6% exp. | prev. 4.1% PCE Core: 3.3% vs 3.3% exp. | prev. 3.4% U.S. July PCE inflation rose 3.7%, slightly above the 3.6% forecast but down sharply from 4.1% in June. Core PCE matched expectations at 3.3%, easing from 3.4% but remaining nearly double the Fed’s 2% target and marking its second-highest reading since October 2024. The mixed report shows inflation is cooling, but only gradually. It is unlikely to trigger an immediate rate hike, though it strengthens the case for keeping rates higher for longer and reduces the chances of near-term cuts.