·          US core PCE inflation data indicates broader price pressure as Trump policy gradually transmits in the real economy with more tariffs from Aug’25 ·          Overall, the US average core inflation (PCE+CPI) will be around 3.0% vs TGT 2.0% and unemployment rate 4.2% vs TGT 3.7% on average for 2025 ·          After expected 50 bps rate cuts in H2CY25, the Fed may again go on an extended pause till at least H1CY25 to assess the real impact of Trump’s uncertain policy On Friday, September 26, 2025, some focus of the market was on U.S. Core PCE inflation, the Fed’s preferred gauge to measure underlying inflation trends. The BEA flash data shows U.S. annual (y/y) core PCE inflation (Seasonally Adjusted-SA) increased by 2.9% in August’25 from 2.8% sequentially, in line with the market expectations of 2.9% and the highest since March’25. The US core PCE inflat...