Fed Sticks to Plan for Rate Cuts Despite Inflation Worries, Cites PCE Measure Near Target

• The Fed sticks to plan for 3 rate cuts in 2024 despite lingering inflation worries • Core CPI has rebounded but Core PCE, the Fed's preferred measure, remains near 2% target • Fed cites differences like housing weights and airfares to explain CPI vs PCE divergence • Powell avoided hints on timing of rate cuts but markets expect cuts to begin in June • Fed median projection for longer run neutral rate edged up, signalling views on post-pandemic growth