May Incomes and Spending Increase, Reversing April Declines; PCE Core Inflation Remains Near Record Low

  The key monthly release of the past week was on Personal Income and Outlays for May from the BEA, which gives us several important metrics, including PCE (personal consumption expenditures), which accounts for 70% of US economic activity, and the PCE price index, targeted by the Fed in recent rounds of quantitative easing.