1.553% Y/Y (unrounded) core PCE prices in.......>

FED: 1.553% Y/Y (unrounded) core PCE prices in March... soft. Morgan Stanley

wrote in their FOMC preview (written prior to this release of course): 

- "given we are missing two reports it is not out of the realm of possiblity

that we could indeed see core PCE hit 1.5%, which is the implicit lower bound of

the Fed's symmetric range. A reading as low as 1.5%Y will raise calls for the

Fed to deliver an "insurance cut". We see the bar for a cut as being higher."

- "In our view, core inflation would need to be sustained at that lower level

and/or come with a deteriorating growth backdrop. We have neither of those in

our forecast. Furthermore, calls for a cut would ignore other important factors

such as the transitory nature of lower inflation, supportive economic growth,

and financial stability risks."