The Federal Reserve's preferred inflation gauge showed prices heated up to the highest level in three years, likely keeping the central bank holding interest rates steady with an eye toward hiking if inflation doesn't dissipate. The Personal Consumption Expenditures index rose 4.1% in May, in line with expectations, and up from 3.8% in April. Month over month, inflation rose to 0.4%, a tenth of a percentage point less than expectations and the same level as April. Excluding volatile energy and food prices, the way the Fed prefers to assess the inflation gauge, "core" PCE rose to 3.4%, in line with ... (full story)