U.S. consumption and inflation rose in July, while weak employment data may prompt the Federal Reserve to cut interest rates

ChainCatcher news, according to Jinshi reports, U.S. consumer spending grew steadily in July, and core PCE warmed up due to import tariffs pushing up prices of some goods. However, the softening labor market may not prevent the Federal Reserve from cutting interest rates next month. Although the low layoff rate supports wage growth, Trump's tariff policy on imported goods has increased business costs, leading employers to be reluctant to hire more staff. Government reports show that in the three months ending in July, employment increased by an average of 35,000 jobs per month, far below the 123,000 jobs in the same period of 2024.