Today’s Lead Story
Friday, June 26Inflation
Fed's Preferred Inflation Gauge Hits 4.1% in May, Savings Rate Slips to 3%
via Bureau of Economic Analysis
The BEA's May 2026 Personal Income and Outlays report, released June 25, shows the PCE price index rose 4.1% year over year while core PCE climbed 3.4%—both well above the Fed's 2% target. Personal income and spending each grew 0.7% on the month, but the personal savings rate held at a thin 3.0%, meaning most households are spending nearly everything they earn.
Why it matters
With inflation running at double the Fed's target, interest rate cuts remain off the table for 2026, keeping mortgage rates, car loans, and credit card costs elevated for millions of households.
