Inflation & Prices
Inflation Data Reinforce Powell’s Shift Toward High for Longer
- Stubborn price pressures mean first rate cut likely delayed
- Fed’s updated rate forecasts likely to show fewer cuts in ‘24
Inflation-adjusted consumer spending grew 0.5% for a second-straight month in March.
Photographer: Yuki Iwamura/BloombergThis article is for subscribers only.
Fresh inflation data released Friday cemented the message from Federal Reserve Chair Jerome Powell last week that high interest rates are here to stay for now.
The Fed’s preferred gauge of underlying inflation climbed 0.3% in March and 2.8% from a year earlier, the same as the prior month. Figures from earlier this year were also revised up slightly, government data showed.