The spending report bolsters the case for a slower pace of interest rate cuts following last month's outsized reduction.

GDP rose by more than 2.5% for a sixth consecutive quarter, "the longest stretch of such solid growth since 2006."

The PPI rose 0.1% from a month earlier and 2.2% from a year ago.

"These days we mostly care about what the PPI means for the Fed's preferred PCE deflator measure of core consumer price inflation. In that respect, April's news was mixed but, on balance, encouraging."

Consumer prices excluding food and energy rose at a 3.3% annualized rate in the final three months of 2023.

CPI registers its first sub-5% reading in two years. Core inflation has also moderated, to 5.5%.

Labor market participation among people 25 to 54 years old has hit a 15-year high.

While increasing interest rates by another 25 bps, the FOMC signals that a pause in the increases is coming.