Inflation pressures have been slowly easing since hitting record-high levels a few years ago. The Fed's favorite inflation gauge, the Core PCE, fell to 2.8% year over year, down from the multi-decade high of 5.57% hit back in February of 2022. The markets breathed a sigh of relief after the data was released.
The takeaway... If inflation continues to cool it could push the Fed to lower interest rates this year which in turn would help borrowing costs to decline from their current frothy levels.
