US May PCE inflation rises 4.1%, keeping Fed hike in play - Reuters
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- PCE inflation rose 4.1% in May, keeping an additional Fed rate hike in play, per Reuters
- Core inflation hit 3.4% in May, the highest level since October 2023, according to CNBC's read of the Fed's preferred gauge
- American consumers continue shopping despite climbing energy costs, per Axios — a sticky-demand signal that gives the Fed less room to ease
Why it matters: With core PCE at a six-month high of 3.4%, the Fed faces fresh pressure to keep tightening, and Axios's observation that consumers are still spending despite higher energy costs underscores exactly why a rate cut remains unlikely — demand has not yet cracked under the weight of cumulative hikes.
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