The Federal Reserve’s efforts to control inflation are showing progress, with the PCE index cooling to 2.6% and consumer spending growing moderately.

Key points of what happened:

Cooling Inflation: The PCE index increased by 2.6% in May, down from 2.7%, indicating cooling inflation.

Moderate Consumer Spending: Consumer spending grew moderately, further evidence of slowing price increases.

Fed’s Interest Rate Strategy: The Fed has maintained borrowing costs at 5.3% and is considering future rate cuts based on economic data.

Labor Market Concerns: Despite strong hiring, signs of a weakening labor market are emerging, with job openings down and unemployment slightly up.

Economic Cooling: Officials are cautious about the broader economic slowdown and its potential impact on the labor market.

What do you think — is this just another FED’s “say something about cutting interest rates, whatever happens” or we will see something in real action?