Reported 12 months ago
The Federal Reserve's preferred measure of underlying US inflation decelerated in May, strengthening the argument for lower interest rates later this year. Household spending rebounded, and incomes showed solid growth, providing hope that price pressures can be controlled without lasting damage to consumers. The core personal consumption expenditures price index, excluding food and energy items, increased by 0.1% in May, the smallest increase in six months, implying a gradual decline in inflation. These developments led to a decrease in Treasury yields and an increase in stocks as investors anticipated potential rate cuts by the Fed.
Source: YAHOO