The Fed's favorite inflation indicator - Core PCE - fell once again in April to its lowest since April 2021 at +2.5% YoY...

Source: Bloomberg

Services inflation is slowing rapidly...

Source: Bloomberg

Headline PCE fell to +2.1%...

Source: Bloomberg

The downturn was triggered by a large deflationary impulse in non-durable goods...

SuperCore PCE also tumbled to four year lows with its first MoM decline since April 2020...

Source: Bloomberg

SuperCore PCE was driven down by a big drop in Financial Services & Insurance costs...

Source: Bloomberg

Finally, for all the terror of tariffs in the soft survey data, spending continues to increase and incomes are growing strongly...

Source: Bloomberg

...it's gonna be hard for Powell to justify the 'pause' now.

More By This Author:

China Drowning In Soaring Coal Inventories Amid Sinking Power Demand, Crashing Coal Price
Stellar 7Y Auction Sees Highest Stop Through Since 2022, Record Low Dealers
Q1 GDP Revision Reveals Big Deterioration In Personal Spending In "Kitchen Sink" Report