How to Invest During Rate Cuts
The Federal Reserve's favorite inflation gauge, the core personal consumption expenditures index, or PCE, which leaves out volatile food and energy prices, rose 2.6% in May on an annual basis, the slowest pace since March 2021. Economists expected as much. As the discussion over "higher for longer" interest rates continues in light of slowing core PCE, it's looking more likely that the Fed will begin cutting the benchmark interest rate as early as September. That's especially true considering that consumer spending came in weaker than projections for May, despite a 0.5% increase in personal income that was faster than anticipated.
