---
title: "Stubborn inflation and services growth push back Fed cuts"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/288818250.md"
description: "Core PCE inflation rose to 3.3% in April, exceeding the Fed's 2% target due to energy costs. Consequently, analysts expect the Federal Reserve to maintain high interest rates until sustained disinflation is evident, delaying rate cuts. Meanwhile, retailers like Five Below and Target demonstrated resilience with increased sales and traffic driven by value-focused strategies."
datetime: "2026-06-05T06:43:38.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/288818250.md)
  - [en](https://longbridge.com/en/news/288818250.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/288818250.md)
---

# Stubborn inflation and services growth push back Fed cuts

Inflation proves sticky: Core PCE inflation rose to 3.3% in April, well above the Fed’s 2% target, as energy-related costs ripple through the economy. Rates to stay high: Analysts expect the Fed to maintain elevated borrowing costs until there is stronger evidence of sustained disinflation, delaying rate cuts. Retailers show resilience: Five Below and Target reported sales and store traffic gains, supported by value-focused strategies and customer engagement efforts.

### Related Stocks

- [TGT.US](https://longbridge.com/en/quote/TGT.US.md)
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