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

Today's U.S. macroeconomic data once again confirmed the tendency of the economy towards a soft landing. The actual personal consumption expenditure (PCE) for June recorded a monthly rate of 0.4%, higher than the expected 0.3%. At the same time, the PCE price index recorded a monthly rate of 0.2%, and the core PCE price index recorded a 4.1% annual rate, both lower than the previous values. On the other hand, the labor cost index for the second quarter also showed a rise of 1%, lower than the 1.2% in the first quarter. More importantly, Powell also mentioned this indicator in the press conference. Meanwhile, 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, that wage rises in multiple regions are returning to or approaching pre-pandemic levels. Overall, these data should give investors more confidence to believe that inflation is in a sustained slowdown trend, and that inflation can effectively return to the 2% target without the need for further policy tightening by the Fed. (The above views are from ING, for reference only)