"Fed's Key Inflation Measure Anticipates Minimal Progress"

The Commerce Department's upcoming report on personal consumption expenditures (PCE) prices is expected to show slight progress in reducing inflation, with April's core inflation predicted to slow to 0.2%. This incremental progress is seen as a step towards the Federal Reserve's 2% target, though achieving this goal may be challenging. The Fed prefers the PCE measure over the consumer price index (CPI) for its reflection of consumer behavior. Current market expectations suggest only one interest rate cut this year, likely in November.