FED EXPECTED TO CONTINUE WAITING, AFTER PCE REPORT The Fed is likely to see the benign PCE inflation report "as the calm before the storm," Fitch Rating's Olu Sonola says in a note. "They will continue to wait for the storm-unless consumer spending buckles and the unemployment rate rises rapidly," he writes. In the April report, personal consumption increased 0.8%. Disposable personal income and consumption also increased. Annual inflation ticked lower, to just a hair above the Fed's 2% target. "This report shows that the U.S. consumer remains resilient," Sonola says.