The latest PCE data shows inflation cooling to its lowest rate since March 2021. Core PCE rose just 2.6% year-over-year in May, signaling that the Fed’s monetary policy might be working.
Key takeaways:
- Monthly core PCE up 0.1%
- Headline inflation flat for the month
- Personal income rose 0.5%
- Consumer spending increased 0.2%
While this news is promising, the Fed remains cautious about rate cuts. They’re looking for “greater confidence” in inflation’s downward trend before making moves.
What’s your take? Is this the beginning of the end for high inflation, or should we brace for more economic turbulence ahead?