Inflation will cool down in March, but don’t expect interest rates to get upset

Inflation cooled a bit last month, but don’t expect interest rate It can also be dropped.

price 2.3% increase The latest personal consumption expenditure data released on Wednesday shows year-on-year in March. This is down from an annual increase of 2.5% in February, Projected 2.2% increase.

PCE is the Federal Reserve’s priority gauge of inflation.

This morning, the numbers came out after they were released Gross domestic production in March Data showed that the economy was contracting at a rate of 0.3% in the first quarter. The contraction was primarily due to businesses and people “panic purchases” of imports President Donald Trump’s tariffs carried out.

However, GDP reports show that consumer spending was also significantly slower in the first quarter. Resilient consumer spending has helped support the economy amidst stubborn inflation and rising unemployment.

The latest data is unlikely to change the Federal Reserve vote on interest rates next week, as it monitors how tariffs and political turmoil will affect it. Economic health. Experts are hoping the Fed will remain stable next week, as it has been going on since January after it fell twice last fall.

Fed Chairman Jerome Powell is under intense pressure from the Trump administration, but after the stock market responded negatively last week, Trump has retreated to the threat of firing Powell.