The Federal Reserve’s preferred inflation gauge showed further cooling in April, strengthening the case for a patient monetary policy stance.
While the data should have supported risk sentiment into the week’s final session, Wall Street turned lower after President Donald Trump accused China of breaching a trade deal, raising fears of renewed tariffs.
PCE Inflation Shows Broad-Based Cooling
The Personal Consumption Expenditures price index, released Friday by the Bureau of Economic Analysis, rose 2.1% year-over-year in April, a deceleration from March’s 2.3% and lower than consensus estimates of 2.2%.
On a monthly basis, prices increased by just 0.1%, rebounding slightly from a flat March reading but still reflecting muted inflationary pressure.
The Fed’s closely …