US inflation data gives Fed mixed signals on October rate hike

US inflation rose 0.3% in August, with core PCE at 3.0% annually, giving the Federal Reserve mixed signals ahead of its October rate decision. The monthly increase was below economist expectations. Overall PCE inflation held at 3.4% year-on-year, unchanged from July, while core PCE matched July's 3.0% reading. Both figures came in cooler than projected, though inflation remains above the Fed's 2% target. New York Fed President John Williams suggested no urgency to hike in October. The Fed raised rates in September, with most officials projecting at least one more increase this year. Second-quarter GDP was revised up to 2.2% annualized, and consumer spending jumped 0.9% in August, though consumer confidence fell to a 12.5-year low.