Fed's Preferred PCE Gauge Falls in June
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- The PCE index — the Fed's preferred inflation barometer — fell in June for the first time since the pandemic, according to new data
- The Federal Reserve held off on raising interest rates this week, with the PCE decline cited as underscoring the case for no action on borrowing costs
Why it matters: The first pandemic-era decline in the Fed's preferred inflation measure gives the central bank cover to keep rates steady, meaning borrowers and consumers continue to see no immediate increase in interest costs — though the article notes the danger is far from over.
