The U.S. and Iranian ceasefire isn’t the only thing on fragile ground these days. American consumers are operating with less gas in their tank, both literally and figuratively. The downside risks for real consumer spending are coming into better view. The biggest concern is the continued erosion of real purchasing power and savings as inflation spikes. Already, core PCE inflation in the first two months of the year averaged a sizzling 4.7% annualized pace (Chart 1). At the same time, the headline rate jumped to a 4.6% annualized pace in February from an uncomfortably warm 3.7% in January. The 0.9% increase in March ... (full story)