PCE Inflation Reached Its Highest Level in 3 Years. Here’s What Investors Need to Know.

PCE inflation rose to 4.1% year-over-year in May, the highest in three years, driven primarily by rising oil prices from Middle East tensions. However, recent declines in oil prices following geopolitical developments suggest inflation may moderate. The Fed expects one rate hike this year, though uncertainty remains around future monetary policy under new Fed Chair Kevin Warsh.