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Fed inflation gauge sets up stagflation risks as tariff policies bite
Inflation eased modestly in March but remains firmly north of the Federal Reserve's 2% target.
The Federal Reserve's preferred inflation gauge remained elevated last month, following a weaker-than-expected first-quarter GDP reading that could stoke stagflation concerns in the world's biggest economy.
The Bureau of Economic Analysis's PCE Price Index report for March, which the Fed closely tracks for a clearer indication of inflation pressures, on Wednesday showed core prices rising at an annual rate of 2.6%. That's just inside the February reading of 2.8% and matched Wall Street's consensus forecast of 2.6%.
