Data released Friday showed the Fed’s preferred gauge of price pressures, the personal consumption expenditures price index, rose by 6.3% last month from April 2021 — more than three times the Fed’s 2% target. The data also showed US consumer spending holding up as households dip into savings.

Fed officials raised interest rates by a half-percentage point earlier this month and Powell has signaled they plan to follow up with increases of the same size in June and July to cool price pressures, even as they start shrinking their massive balance sheet

Concern over how aggressively the Fed will move has triggered severe financial-market volatility as investors fret it might cause a recession. But sentiment was brightened last week by some better corporate news and a suggestion by Atlanta Fed President Raphael Bostic that a pause on rate increases in September might make “sense.”