#USCorePCEMay #USCorePCEMay
📊 #USCorePCEMay Update!
U.S. Core PCE inflation rose 0.2% in May, pushing the annual rate to 2.7%, topping expectations of 2.6%—and exceeding April’s 2.6% .
📉 Meanwhile, consumer spending dropped 0.1%, while personal income slid 0.4%, signaling frugal households .
🚨 **Why it matters:**
Core PCE is the Fed's preferred inflation gauge; this uptick dims hopes for a July rate cut .
Cautious consumer behavior and sticky inflation may keep rate cuts off the table this summer .
👀 Market reaction:
S&P 500 & Nasdaq hit new highs despite the data
Treasury yields softened amid easing economic activity concerns .
🔗 Key takeaway:
May’s Core PCE above forecasts + cooling consumer trends = Fed likely to hold rates steady, eyeing more stability before making the first cut.
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Stay tuned! Will inflation ease enough to unlock those rate cuts later in 2025?