The core PCE, excluding food and energy, increased to 2.7 percent from the previous year. The Federal Reserve’s preferred inflation measure, the PCE price index, came in below expectations, indicating the central bank is nearing its 2 percent target. The PCE decreased to 2.2 percent year over year, down from 2.5 percent in the prior month, falling short of economists’ forecasts. Goods prices dropped by 0.9 percent, while services surged by 3.7 percent. Food costs rose by 1.1 percent, and energy prices fell by 5 percent. Excluding the volatile food and energy components, the core PCE also rose by 0.1 percent, lower than expected. The core PCE index increased to 2.7 percent from the same month a year ago, meeting market expectations. The latest inflation data presented mixed results for the Federal Reserve. Personal income and spending increased by 0.2 percent, below expectations. The personal saving rate dipped to 4.8 percent from 4.9 percent in July. The Cleveland Fed’s Inflation Nowcasting model predicts a 2.1 percent annual PCE inflation rate next month. The CPI annual inflation rate is forecasted to ease to 2.3 percent. Fed Chair Jerome Powell emphasized the goal of sustainable 2 percent inflation. Fed Gov. Michelle Bowman supports a quarter-point rate cut to reset monetary policy. Various upside risks to inflation were cited by Bowman, including fiscal policy and supply chain disruptions. Fed Gov. Christopher Waller expressed concern about low inflation and supported a half-point interest rate cut. The Fed may continue cutting interest rates if inflation remains under control. The next Fed policy meeting is scheduled for November 6 and 7, with expectations split between a 25- and 50-basis-point rate cut. Please rewrite the following sentence:
“The cat quickly ran across the street.”
“The feline swiftly darted across the road.”
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