US CONSUMER SPENDING SOLID IN JULY

U.S. consumer spending increased solidly in July, suggesting the economy remained on firmer ground early in the third quarter and arguing against a half-percentage-point interest rate cut from the Federal Reserve next month. The Commerce Department also showed prices rising moderately last month, curbing inflation.

A jump in the unemployment rate to a near three-year high of 4.3% in July stoked fears over the economy's health, leading financial markets and some economists to put a 50-basis-points rate cut on the table when the U.S. central bank embarks on a widely anticipated policy easing in September.

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