Although the latest CPI numbers got investors spooked, the Fed has always based their decision on the PCE instead due to its broader scope in terms of goods and services, as well as the assumption that it better reflects how consumers react to rising prices. (i.e. when pork prices increase, consumers might buy more chicken instead)
In the last PCE reported on 27 May 2022, the index actually went down from 6.6% in March to 6.3% in April. On that account, the prior rate hikes by the Fed appeared ...