CorePCEReport

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📈 Core PCE Report – May 2025: Inflation Still High

Washington, D.C. — New data about U.S. inflation in May 2025 is making the Federal Reserve’s next moves harder to decide.

🔍 Main Points from the Report

Inflation Staying Strong
Prices kept rising in May. This means inflation is still not coming down much. Because of this, it is unlikely the Fed will lower interest rates in July.

Economy Showing Weakness
Even though prices are high, the economy is slowing down.

Personal income fell by 0.4%.

Consumer spending dropped by 0.1%.

Experts think rising tariffs are also pushing prices higher for goods and services.

🧠 What This Means for the Federal Reserve

The Fed has a tough choice:

Inflation is too high to safely cut rates.

But the economy is getting weaker.

If inflation doesn’t start dropping soon, a rate cut may be delayed even longer.

📊 How Markets Reacted

Stocks
The S&P 500 futures went up a little. This was mainly due to good news in other areas, like new rare-earth export deals.

Bonds
Treasury yields (interest rates) fell slightly. This was likely because consumer spending and income looked weak.

✅ Bottom Line

Inflation is still strong, and people are starting to spend less. The Federal Reserve will have to balance high prices with a slowing economy. Cutting interest rates anytime soon looks less likely.