The data once again reinforces the expectation of a soft landing, and the Federal Reserve may no longer need to raise interest rates.

Today's US macroeconomic data once again confirmed the tendency of a soft landing for the economy. The actual personal consumption expenditure for June recorded a monthly rate of 0.4%, higher than the expected 0.3%. Meanwhile, the PCE rate recorded 0.2%, and the core PCE rate recorded 4.1% on an annual basis, both lower than the previous values. On the other hand, the labor cost index for the second quarter also softened, rising 1% compared to the first quarter's 1.2%. More importantly, Powell mentioned this indicator during a press conference. The slowdown in wage rises and employment benefits also indicates a cooling of labor costs, which is consistent with the comments in the Fed's Beige Book, namely that wage rises in multiple regions are returning to or approaching pre-pandemic levels. Overall, these data should give investors more confidence that inflation is in a sustained slowdown trend, and inflation can effectively return to the 2% target without the need for further tightening of policies. (The above views are from ING Bank and are for reference only).