Consumer sentiment falls in May as Americans' inflation expectations jump after tariffs

[progree]

5. "A final consumer sentiment index for the month is slated to be released on May 30, and will likely be closely watched

A final consumer sentiment index for the month is slated to be released on May 30, and will likely be closely watched to see if the tariff pause led to an improvement in sentiment.

So, 2 weeks from now. Also, on May 30, the PCE inflation report comes out -- this is the Fed's favorite inflation gauge (particularly the core part of it). It's likely to be quite tame, given that the April reading of the CPI was 0.22%, (Core CPI 0.24%), PPI: --0.47%, (Core PPI --0.11%), these are all April over March numbers. My understanding is that the PPI factors into PCE inflation (PPI is Producer Price Index aka wholesale prices).

I'm using double minuses for minuses to make them stand out better.

I'm not a fan of PCE inflation because it fully takes substitution into account, i.e. if a lot of consumers switch from steaks and beef to turkey necks, this shows up as a reduction in meat prices. I have no use, nor do I have any interest in such a price index. Unfortunately, the Fed loves it because, in inflationary times, it comes out lower than the CPI (making it look like they are making more progress on inflation than they really are), and they can all easily afford steaks morning, noon, and night.