Fed’s Preferred Inflation Measure Hits 7-Month Low

The U.S. central bank is not expected to cut interest rates until September.

The Federal Reserve building is seen in Washington, U.S., January 26, 2022. Joshua Roberts/Reuters

The Federal Reserve’s preferred inflation measure inched closer to the U.S. central bank’s 2 percent target in April.

According to the Bureau of Economic Analysis, personal consumption expenditure (PCE) inflation slowed to 2.1 percent last month, from 2.3 percent in March. This is the lowest reading since September 2024.