US Inflation Cools Down as PCE Drops Below 2%, Leaving Fed’s Future Uncertain

The US PCE inflation rate, a key indicator for the Federal Reserve’s policy decisions, has unexpectedly fallen to its lowest point in eight months. The Commerce Department reported that April’s PCE inflation stood at 2.1%, below expectations and indicating a potential easing of inflationary pressures. This decline, despite new tariffs imposed by President Trump, may challenge the Fed’s future direction regarding interest rate hikes or cuts.