Key Fed measure shows inflation rose 2.6% in May from a year ago, as expected

- In May, inflation rose 2.6% from a year ago, in line with expectations - Personal income rose 0.5%, stronger than expected, while consumer spending increased 0.2% (weaker than forecast) - The Federal Reserve targets 2% inflation and has raised interest rates since 2022 - Investors have scaled back expectations of rate cuts to just two, starting in September - Recent economic data shows GDP increasing but some signs of weakness in the labor market