Eco Week Ahead

Fed’s Preferred Inflation Gauge Is Set to Back Rate-Cut Patience

  • After CPI data rocked global markets, focus shifts to core PCE
  • BOJ may hint at future rate hikes; German Ifo index due

Jerome Powell during a fireside chat at the Wilson Center in Washington, DC, on April 16.

Photographer: Samuel Corum/Bloomberg
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Federal Reserve officials are about to get further confirmation that progress against inflation has stalled, supporting what appears to be a shift in tone to keep interest rates higher for longer than previously anticipated.

Policymakers’ preferred inflation gauge — the personal consumption expenditures price index — probably stayed elevated in March, according to data due in the coming week.