Fed's Key Inflation Gauge Rises 0.3% in April

The personal consumption expenditures (PCE) index, a key inflation measure watched by the Federal Reserve, rose 0.3% in April, with core prices up 0.2%. Annual inflation remains high at 2.7%, well above the Fed's 2% target. Consumer spending increased by just 0.2%, indicating that Americans are cutting back due to high prices. The Fed is cautious about cutting interest rates until inflation shows consistent signs of decline.