In May, the Federal Reserve's preferred inflation gauge, the core Personal Consumption Expenditures (PCE) index, showed a slight easing of inflation as prices rose at their slowest pace since March 2021. The 0.1% increase in May was in line with Wall Street's expectations and slower than April's 0.3% rise. The annual increase of 2.6% in May was the slowest in over three years. Despite promising inflation prints in May, Federal Reserve officials remain cautious about the trend, stating that they will not consider cutting rates until they have greater confidence in inflation's path. Fed chair Jerome Powell emphasized the need for more positive data to ensure inflation is moving sustainably towards the 2% target. This cautious approach was reflected in the recent decision to keep interest rates unchanged amidst uncertainty about the future trajectory of inflation.