Strong US consumer spending, inflation readings put Fed in tough spot

Consumer spending increases 0.8% in April Core PCE price index rises 0.4%; up 4.7% year on year Core capital goods orders rebound 1.4%; shipments up 0.5% WASHINGTON, May 26 (Reuters) – U.S. consumer spending increased more than expected in April, boosting the economy’s growth prospects for the second quarter, and inflation picked up, which could…