Sept 27 Reuters The personal consumption expenditures PCE price index rose 0.1 in August after an unrevised 0.2 gain in July the Commerce Department reported on Friday. Economists had forecast PCE inflation advancing 0.1. In the 12 months through August, the PCE price index increased 2.2 after rising 2.5 in July.

The core PCE price index excluding the volatile food and energy components increased 0.1 after an unrevised 0.2 rise in July. In the 12 months through August, core inflation advanced 2.7 after climbing 2.6 in July. The U.S. central bank tracks the PCE price measures for its 2 inflation target.

MARKET REACTION

STOCKS U.S. stock futures firmed 0.16 pointing to a steady Wall Street open

BONDS The U.S. Treasury 10year yield eased to 3.762 and the twoyear yield fell to 3.584

FOREX The dollar index fell 0.4

COMMENTS

QUINCY KROSBY, CHIEF GLOBAL STRATEGIST, LPL FINANCIAL, CHARLOTTE, NC emailed note

The August PCE report supports the Fed39;s decision to go big on September 18, although the core yearoveryear at 2.7 suggests that another round of 50 basis points needs to come under careful scrutiny unless the labor market suggests weakness.

Although the Fed cannot declare complete victory on inflation, today39;s report with 2.2 on the yearover year headline underscores that overall inflation continues to move decisively in the right direction.

The equity futures across the board are applauding the numbers as the tenyear Treasury yield inches lower.

JAMIE COX,…