A key inflation measure tracked by the Federal Reserve showed inflation rising 2.6% in May 2024 compared to a year ago, matching economists' expectations. The core PCE price index, which excludes volatile food and energy costs, increased 0.1% in May. Housing costs continued rising, up 0.4% for the fourth straight month, keeping broader inflation pressures higher. Investors have scaled back expectations for Fed rate cuts this year from six to just two, starting in September.