#USCorePCEMay 📊 #USCorePCEMay – Latest Core Consumer Inflation Data (May 2025) 🇺🇸

📈 Official Results (Based on Pre-Publication Estimates)

Monthly (MoM): +0.1 % (Similar to April)

Annual (YoY): +2.6 % – Up from +2.5 % in April

The readings indicate that core inflation remains stable at moderate levels, supporting expectations for interest rate cuts later in 2025

🏦 Federal and Market Reaction

Most members expect to hold rates steady until September, with a rate cut probability in September (+70%) and an initial outlook for a possible cut in July (+12–21%)

Federal Reserve Chair Jerome Powell remarks cautiously, suggesting that the full effects of tariffs are likely to appear in June and July data

On the financial side, moderate inflation data supports rising stock indices, evidenced by the S&P 500 surpassing a new record level yesterday

🔍 Points for Discussion

Is an annual rate of +2.6 % sufficient to push the Federal Reserve towards cutting interest rates during the summer?

How do you see the impact of tariffs on inflation starting in June? Do you think the Fed could rush into a rate cut before these effects become clear?

In this environment, what is better for investors: focusing on stocks due to a stable interest rate environment, or anticipating rising inflation ahead?

👇 Share your opinion in the comments:

Do you expect a rate cut in July or September and why?

Do you see it as an attractive investment opportunity for stocks or the bond market?