😱𝐒𝐢𝐠𝐧𝐬 𝐨𝐟 𝐑𝐚𝐭𝐞 𝐂𝐮𝐭𝐬 𝐀𝐡𝐞𝐚𝐝❓❓

♦️𝐓𝐡𝐞 𝐥𝐚𝐭𝐞𝐬𝐭 𝐔.𝐒. 𝐏𝐞𝐫𝐬𝐨𝐧𝐚𝐥 𝐂𝐨𝐧𝐬𝐮𝐦𝐩𝐭𝐢𝐨𝐧 𝐄𝐱𝐩𝐞𝐧𝐝𝐢𝐭𝐮𝐫𝐞𝐬♦️💥 (𝐏𝐂𝐄) 𝐏𝐫𝐢𝐜𝐞 𝐈𝐧𝐝𝐞𝐱 𝐣𝐮𝐬𝐭 𝐝𝐫𝐨𝐩𝐩𝐞𝐝 𝐚 𝐬𝐮𝐫𝐩𝐫𝐢𝐬𝐞🤯: 0.0% month-over-month—down significantly from the previous 0.5%. This marks a notable cooling in core inflation, coming just days before the Fed's May 7 policy meeting.

While the PCE report comes from the independent Bureau of Economic Analysis (BEA), you can bet Fed Chair Jerome Powell is paying close attention. With inflation easing, this data gives the Fed a solid, politically neutral reason to consider rate cuts—especially in a heated election year where figures like Donald Trump are pushing for lower rates.

Powell is likely cautious about appearing politically influenced, but the numbers now give him more room to maneuver. Markets are now leaning toward a dovish tone—or possibly even a rate cut—when the Fed meets next week. Regardless of the outcome, the Fed's position is clearly more flexible than it was just a few weeks ago.

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