#USCorePCEMay The #USCorePCEMay report paints a complex picture for the Federal Reserve. While the 2.7% year-over-year Core PCE, exceeding expectations, signals persistent inflationary pressures, the unexpected drop in consumer spending suggests a potential economic slowdown. This creates a delicate balancing act for the Fed: curbing inflation without stifling growth. Markets are now less certain about immediate rate cuts, emphasizing the Fed's data-dependent approach. Investors will be keenly watching upcoming economic indicators to discern whether inflation truly remains "stubborn" or if the consumer pullback foreshadows a broader cooling, impacting future monetary policy decisions.