**[Fed's Favorite Inflation Gauge Released, PCE Flat for Two Consecutive Months]** Jin10 News, August 26 – The U.S. PCE Price Index has been released, which is the Federal Reserve's most favored inflation gauge. The annual PCE inflation rate stands at 3.7%, unchanged from June. Excluding the more volatile food and energy categories, the core PCE inflation rate is 3.3% year-over-year, also unchanged from June. Since this report incorporates previously released inflation data, the PCE figures often align closely with investor expectations. However, as the Fed grapples with inflation challenges, this report further clarifies the inflation landscape. Fed Chair Walsh is set to deliver a significant speech on Friday. The U.S. CPI data in July brought some good news: core CPI eased to a relatively moderate 2.5%. However, the PCE inflation rate assigns different weights to various spending categories, which has consistently resulted in stronger performance. Currently, there remains significant uncertainty about how Walsh views the inflation challenges he has inherited. He has not included his economic forecasts in the quarterly "dot plot," which summarizes Fed officials' projections for the economy and interest rates. Additionally, he has not indicated whether he might support rate hikes in upcoming meetings, a question that has already caused divisions among Fed officials.