28/05/2026
U.S. inflation remains stubbornly above the Federal Reserve’s target, reducing expectations for near-term interest rate cuts.
The latest PCE inflation data showed:
• Headline PCE inflation: 2.7% YoY
• Core PCE inflation: 2.8% YoY
• Monthly increase: 0.3%
While inflation has cooled from previous highs, the pace of disinflation appears slower than markets anticipated. Strong consumer spending, resilient economic activity, and persistent services inflation continue to support the Fed’s cautious approach.
For investors, the “higher-for-longer” interest rate environment may continue to shape market volatility, bond yields, and sector performance in the months ahead.
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