Fed inflation gauge falls in May, strengthening likelihood of Autumn rate cut

Reported over 1 year ago

The Federal Reserve's preferred inflation measure, the PCE Price Index, decreased slightly in May, reaching the lowest level in over three years. This could bolster the case for a rate cut in the autumn. Core prices rose 2.6% annually, matching expectations and marking the slowest increase since March 2021. Fed officials project only one rate cut by year-end, contrasting with market expectations of at least two cuts. Personal incomes in May increased by 0.5%, showing some stability in the labor market, while spending rose by 0.2%. The data release had minimal impact on stocks and bond yields.

Source: YAHOO

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