Group 1 - Consumer spending slowed down for the second consecutive month in September, with inflation improving slightly as indicated by federal data [1][2] - The annual inflation rate for core PCE was reported at 2.8% in September, matching the increases from August and Wall Street's expectations [1][2] - Inflation-adjusted consumer spending remained unchanged from August to September after a previous increase of 0.4%, while personal income rose by 0.4% [3] Group 2 - The Federal Reserve prefers core PCE data over consumer price inflation reports to better understand American spending habits [2] - The inflation reading has remained above the Federal Reserve's 2% target for core PCE inflation for 55 consecutive months [2] - There are rising expectations for a third interest rate cut by the Federal Reserve, with traders pricing in 87% odds for a reduction to a range of 3.5% to 3.75% [4]