The Fed's favorite inflation indicator - Core PCE - fell once again in April to its lowest since April 2021 at +2.5% YoY...

The downturn was triggered by a large deflationary impulse in non-durable goods...

SuperCore PCE also tumbled to four year lows...

Finally, for all the terror of tariffs in the soft survey data, spending continues to increase and incomes are growing strongly...

...it's gonna be hard for Powell to justify the 'pause' now.

...it's gonna be hard for Powell to justify the 'pause' now.
{ai:summary}Core PCE inflation dropped to 2.5% year-over-year in April, the lowest since April 2021, indicating a significant slowdown in services inflation. Headline PCE also fell to 2.1%, driven by a deflationary trend in non-durable goods, while spending and incomes continue to rise.This data presents a challenge for Fed Chair Jerome Powell in justifying a pause in interest rate adjustments. The decline in SuperCore PCE to four-year lows further complicates the Fed's inflation outlook. #economy

Despite Tariff-flation Fearmongering, Fed's Favorite Inflation Indicator Tumbles To Four-Year Low

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