Data released on Wednesday by the U.S. Department of Commerce's Bureau of Economic Analysis showed that the Personal Consumption Expenditures (PCE) price index rose 0.2% month-over-month in July, with the year-over-year increase remaining at 3.7%. The core PCE index, excluding food and energy, also rose 0.2% month-over-month, with its year-over-year growth holding steady at 3.3%, in line with market expectations. Meanwhile, inflation-adjusted real personal consumption expenditures were flat month-over-month, following strong growth recorded in May and June. These data indicate signs of a cooling U.S. economy in July after strong expansion in early summer, providing more data support for the Federal Reserve to pause interest rate hikes, although core PCE remains well above the Federal Reserve's 2% policy target.