Posted 3/30/2024, 11:34:00 AM
Inflation Cools in February, Supporting Case for Fed Rate Cuts This Summer
- PCE inflation index, the Fed's preferred measure, slowed to 0.3% monthly increase, down from 0.5% in January
- Annual PCE inflation rate ticked up to 2.5%, but core index excluding food and energy declined to 2.8%
- Cooling inflation reduces pressure on Fed to keep rates high
- Slowdown in services spending signals slower consumer spending growth ahead
- Economist Jeffrey Roach says data supports Fed rate cuts beginning in June