Actually, there’s a small detail in this PCE data that’s easy to overlook. The short-term market focus is mostly on inflation and rate hike expectations, but this detail is about how much longer U.S. consumer spending can stay strong. In August, personal income only grew by 0.2% month-over-month, while personal consumption expenditures grew by 0.9%. In other words, spending is growing significantly faster than income. This is also the challenge the Fed will face next. Current consumer spending is still strong, but the income growth supporting it is relatively weak. If rate hikes continue, the cost of borrowing for consumption will keep rising. If spending slows down in the future because of this, the impact will gradually trickle down to corporate revenues and hiring. A @Gate, trading more markets.