Data released moments before by the US Bureau of Economic Analysis showed an increase in US personal income by $89.3 billion in April by 0.4%, while the PCE, the preferred indicator for measuring inflation, increased by 0.9% on a monthly basis, by $152.3 billion, compared to 1.1 % in the March reading.

The annual index fell to 6.3% in April, compared to 6.6% in the March reading, while it was expected to be stable. The core index, excluding food and energy prices, fell to 4.9% compared to 5.2% in the March reading (expectations of 4.6%).

The decline in the Fed’s preferred indicator for measuring inflation reduces the pressure on the US Federal Reserve’s strict monetary policy, and it is not unlikely that we will witness a decline in the intensity of the statements of the Fed members in the coming period, especially if negative data continues to appear from the US economy.