 The government's personal consumption expenditure index rose 2.6% from a year earlier, weaker than the April gain, while the core rate factoring out volatile food and gas prices posted its smallest increase since March 2021. That's key because the PCE is closely followed by the Federal Reserve for its rate-setting decisions, and Fed members have reiterated that they want to see a convincing trend that inflation is heading towards the central bank's 2% target before they entertain rate cuts.