Summary:
The Fed's core PCE rose 2.7% in May, above expectations. Policymakers consider rate cuts as consumer spending and income cool.
PCE price index June
31/7/2025 (Thu)
Previous: 2.7% Forecast: 2.7%
The Fed's preferred inflation gauge, the core PCE price index, rose 2.7% year-over-year in May. This was higher than the expected 2.6% growth and a pickup from 2.6% in April.
Policymakers are currently debating whether inflation is tame enough to resume rate cuts. Along with the inflation numbers, consumer spending and income showed further signs of weakening.
Many consumers had bought imported products in March and April in anticipation that tariffs would drive up prices. People have also gotten nervous about the state of the economy, according to consumer surveys.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
SoftBank stock price hits record highs as AI investments, Vision Fund recovery, and mega IPO plans fuel investor confidence in 2024.
2025-08-08
Sterling steadied on Friday after Bloomberg reported Fed Governor Christopher Waller is a top candidate for central bank chair in Trump’s team.
2025-08-08
Intel's plunge, weak EPS, layoffs, and a Fitch downgrade shake chip sentiment. What fresh signals should traders watch next?
2025-08-08
