Core PCE in the U.S. rose 0.2% MoM and 3.3% YoY in July, all in line with expectations. Overall PCE rose 0.2% MoM and 3.7% YoY, slightly above expectations. The data isn’t exactly bullish, but with core inflation not exceeding expectations, the market remains stable for now. However, the 3.3% core inflation is still far above the Fed’s 2% target, so it’s hard for monetary policy to shift to easing anytime soon. Next up, we’re waiting for Walsh’s speech on Friday. After Besant announced raising the single repurchase cap for long-term U.S. bonds from $2 billion to at least $4 billion, the entire market is watching how Walsh will respond. Today’s PCE is just a small test—whether he’s dovish or hawkish will determine the main market trend for the coming months.