An inflation measure closely watched by the Federal Reserve rose faster than expected in March as high prices continue to weigh on millions of Americans. The personal consumption expenditures index showed that consumer prices rose 0.3% from the previous month, according to the Labor Department, in line with expectations. On an annual basis, prices climbed 2.7% – higher than both the 2.6% forecast from LSEG economists and the 2.5% reading recorded the previous month. In another sign that progress...
The core personal consumption expenditures price index was expected to increase 2.7% from a year ago in March, according to the Dow Jones consensus estimate.
WASHINGTON >> A measure of inflation closely tracked by the Federal Reserve remained uncomfortably high in March, likely reinforcing the Fed’s reluctance to cut interest rates anytime soon and underscoring a burden for President Joe Biden’s re-election bid.
Central bankers were widely expected to leave borrowing costs at a level
Powell likely to signal that lower inflation is needed before Fed would cut rates
After three straight hotter-than-expected inflation reports, Federal Reserve officials have turned more cautious about the prospect of interest rate cuts this year
By CHRISTOPHER RUGABER AP Economics Writer WASHINGTON (AP) — After three straight hotter-than-expected inflation reports, Federal Reserve officials have turned more cautious about the prospect of interest rate cuts this year. The big question, after they end their latest policy meeting Wednesday, will be: Will they still signal rate cuts at all this year? Wall
The PCE index shows that progression on bringing down inflation has stalled. | Economy
Inflation remained stubbornly high last month, but it hasn’t stopped Americans from spending. The Personal Consumption Expenditures price index — a closely watched inflation gauge favored by the Federal Reserve — accelerated to 2.7% for the year ended in March, according to data released Friday by the Commerce Department. That rate was above economists’ expectations for a 2.6% gain and landed above February’s reading of 2.5%. On a monthly basis, prices rose 0.3%, unchanged from the pace seen in...
FED'S POWELL: AS INFLATION HAS COME DOWN TO BELOW 3%, THE FED'S EMPLOYMENT GOAL COMES BACK INTO FOCUS. FED'S POWELL: I DON'T KNOW IF INFLATION WILL FALL ENOUGH, OR WON'T FALL ENOUGH, TO MERIT RATE CUTS. POWELL: DON'T REALLY UNDERSTAND WHERE TALK OF STAGFLATION SCENARIO IS COMING FROM GIVEN U.S. DATA FED'S POWELL: WE SAW A YEAR OF VERY HIGH PRODUCTIVITY GROWTH IN 2023. FED'S POWELL: WE COULD HAVE A
Since the start of the year, central bankers' best hopes to take pressure
The US central bank's favored measure of inflation accelerated last month, according to government data published Friday, pushing back the chances of an interest rate cut this summer.The hotter print is likely to cement the view that inflation, while down sharply since 2022, remains a challenge, and could keep the Federal Reserve on pause as it seeks to battle rising prices.It also complicates US president Joe Biden's reelection message as he seeks to convince still-skeptical consumers that the...