Hot Core PCE Inflation Hits 2.7% – Fed Rate Cut Expectations Diminish as Price Pressures Mount | FXEmpire Analysis
Key Points:Core PCE rose to 2.7% in May, beating forecasts and moving further from the Fed’s 2% inflation target.Hot inflation data pressures the Fed to delay rate cuts, forcing traders to recalibrate easing expectations.Personal income fell 0.4% while spending slowed, signaling cautious consumer behavior under inflation.Core Inflation Beats Expectations, Pressuring Federal Reserve PathThe Federal Reserve’s preferred inflation gauge showed a hotter-than-expected print for May, complicating the c