Recent reports indicate a significant decline in US consumer spending as the effects of pre-tariff boosts wane and inflation pressures persist. The personal consumption expenditures (PCE) index showed an unexpected drop in spending and a rise in core inflation to 2.7%, exceeding expectations. Personal income also fell by 0.4%, contributing to a cautious consumer sentiment. Analysts warn that the new inflation readings are unlikely to resolve ongoing debates regarding rate cuts by the Federal Reserve, especially as trade tensions and tariffs continue to impact the economy.