US PCE inflation tops 4.0% in May; consumer spending strong

The US Personal Consumption Expenditures (PCE) price index rose above 4.0% in May, with consumer spending remaining robust. This was reported by Qazaqyia.kz citing Reuters.

The PCE inflation measure is the Federal Reserve's preferred gauge. The May reading is double the Fed's 2% target. Strong consumer spending suggests the economy is still overheating, which could lead to further tightening of monetary policy by the Fed.