Core PCE is a cause for concern.

The Fed's preferred inflation measure has been running a bit hot in the past three months. Core PCE was 3.9% annualized in March. 4.4% annualized over the last three months (albeit January's unusually high reading is doing most of the work there).

The Fed's long-term target is ~2%. So don't expect rate cuts for some time till we see some more progress on inflation.

The market is expecting the next rate cut in September.