Group 1: Inflation and Economic Growth - Inflation driven by tariffs is gradually permeating the U.S. economy, while economic growth momentum is weakening [1] - The core Personal Consumption Expenditures (PCE) index is expected to rise by 0.3% month-on-month in July, leading to a year-on-year increase from 2.8% to 2.9%, the highest level since February [1] - Some economists predict that the year-on-year growth rate may jump to 3%, the highest since March 2024 [1] Group 2: Consumer Spending and Economic Indicators - The upcoming PCE report is expected to show a 0.5% month-on-month increase in consumer spending for July, up from 0.3% in the previous month [3] - Analysts believe that the growth in consumer spending is driven by a surge in new car sales, but future growth rates are expected to slow down [3] - The second quarter saw a 1.6% increase in personal consumption expenditures, but forecasts suggest a slowdown to 1.3% in the third quarter and further to 1.1% in the fourth quarter due to rising prices and a slowing job market [3] Group 3: Federal Reserve's Stance - Federal Reserve Chairman Jerome Powell has indicated a significant reduction in concerns about inflation, focusing more on the job market, which suggests a potential for rate cuts in September [1] - High inflation reports may limit the Federal Reserve's ability to cut rates further later this year [2] - The upcoming August CPI inflation data will be crucial for the Federal Reserve's decision-making regarding rate cuts in mid-September [2]