Sticky US Inflation and Tariffs Are Keeping the Fed Sidelined

US inflation remains at a disquieting level for Federal Reserve officials, just as the Trump administration moves forward with tariffs that risk keeping price pressures elevated.

The personal consumption expenditures price index excluding food and energy — the Fed’s preferred measure of underlying inflation — probably rose 0.3% in February for a second month, based on a Bloomberg survey. The so-called core gauge is estimated to have accelerated to a 2.7% annual pace.