ING believes that the US economy is in better balance after core PCE inflation in August came in lower than expected.
The monthly rate was 0.2 percent versus the expected 0.3 percent, while the annual rate of 3 percent was below the consensus of 3.3 percent. According to ING, the figure supports Fed official John Williams’ view that there is no immediate urgency to raise interest rates again, although further tightening will likely be required going forward.
