The Fed's Preferred Inflation Metric Slowed in June -- but Investors Shouldn't Get Too Excited Yet
The reason for the drop has already gone up in smoke.
Overview
The Personal Consumption Expenditures (PCE) Price Index is the gold standard for measuring inflation, according to the U.S. Federal Reserve. “That’s our number; we’re sticking with it,” said Fed Chair Kevin Warsh at yesterday’s press conference.
Then today, the June 2026 PCE Price Index was released, showing a decrease in PCE prices for the first time in six years. You'd think that'd be cause for celebration.
Details
Not so fast. That decrease, unfortunately, comes with a huge asterisk. Here’s why we shouldn’t get excited about June’s PCE, but instead should get worried about what it means for inflation in the coming months.
Source
Originally published at www.fool.com.
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