March PCE rises 2.3% year-on-year.

The Personal Consumption Expenditures (PCE) price index for March, a closely monitored inflation metric by the Federal Reserve, indicated a reduction in inflationary pressures in the U.S., potentially providing the Federal Reserve room to ease monetary policy once again. The PCE price index recorded a year-on-year increase of 2.3% during the month, a decline from the revised February reading of 2.7%. On a monthly basis, the index remained unchanged, down from the revised growth of 0.4% in February. Meanwhile, the metric called "core," which excludes more volatile items like food and fuel, stood at 2.6% annually, down from 2.8% in February. Month over month, it remained stable, decreasing from the revised growth of 0.5% from the previous month. This indication that inflationary pressures are easing may provide the U.S. central bank with the impetus to start cutting interest rates again, especially as fears grow that President Donald Trump's aggressive trade agenda will weigh on broader economic activity. Data released early Wednesday showed that the U.S. economy unexpectedly contracted in the first quarter, with gross domestic product, a growth indicator in the world's largest economy, contracting by 0.3% during the January to March period. Additionally, U.S. private employers added far fewer jobs than expected in April, with private payrolls increasing by 62,000 this month. This followed U.S. consumer confidence plummeting to the lowest level in nearly five years in April, and job openings fell sharply in March. The Federal Open Market Committee, which sets rates, will meet next week after choosing to keep borrowing costs unchanged at its March meeting earlier this month due to uncertainty surrounding Trump’s political moves.