Overview
- The Fed’s preferred inflation gauge, the personal consumption expenditures index, slowed to 2.1% in April from 2.3% in March.
- Core PCE inflation, which strips out food and energy costs, remained at 2.5% year-over-year.
- The Federal Reserve has kept its benchmark interest rate unchanged since January despite White House pressure for rate cuts.
- A federal court ruled most of President Trump’s tariffs unlawful but left them in place during appeals, leaving their pricing impact uncertain.
- Near-term inflation expectations are rising, with consumers and professional forecasters citing tariffs as a primary driver of anticipated price gains.