Consumer spending accelerated sharply, inflation continued to cool, and the labor market remained remarkably resilient. The weakness in the headline GDP number was driven more by government spending and slower investment than by deterioration in private demand. If monthly core inflation can remain near 0.1%, inflation should gradually trend closer to the Fed's target over the coming months. The sharp decline suggests that beneath the headline inflation numbers, broad-based price pressures continue to ease. In the US debt market, yields moved higher as traders continued to sell since the FOMC rate decision and Warsh comments.