The positive side to the federal government raising interest rates is you can make more money off your saving accounts.
Inflation data showed that “core” prices, which don't include things like gas or groceries, rose by an elevated 0.3% from February to March.WASHINGTON — A measure of inflation closely tracked by the Federal Reserve remained uncomfortably high in March, likely reinforcing the Fed's reluctance to cut interest rates anytime soon and underscoring a burden for President Joe Biden's re-election bid.
After peaking at 7.1% in 2022, the Fed’s favored inflation index steadily cooled for most of 2023. Yet so far this year, the index has remained stuck above the central bank’s target rate. More expensive gas and higher prices for restaurant meals, health care and auto repairs and insurance, among other items, have kept the overall pace of price increases elevated. With new-car prices up sharply in the past few years, auto repair and replacement costs have risen especially fast.
The chronically elevated measures of inflation have become a source of frustration for the Fed, whose policymakers had projected as recently as last month that they expected to cut their benchmark rate three times this year. Most economists expected the cuts to begin in June. More recently, though, several Fed officials, including Chair Jerome Powell to cut their key rate, a move that would eventually lead to lower rates for mortgages, auto loans, credit cards and many business loans.
Despite the continuing inflation pressures, robust growth in jobs and average wages has allowed many American consumers to continue spending at a healthy clip, supporting a still-durable economy. That helps explain why Fed officials have said they can afford to keep borrowing rates where they are for now. The economy did Beginning in March 2022, the Fed raised its benchmark rate 11 times to attack the worst bout of inflation in 40 years.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fed's Williams: Outlook is uncertain, Fed must be data-dependentFederal Reserve (Fed) Bank of New York President John Williams said on Thursday that the Fed must be data-dependent as the outlook remains uncertain, per Reuters.
Read more »
Fed's preferred inflation gauge shows price pressures stayed elevated last monthA measure of inflation closely tracked by the Federal Reserve remained uncomfortably high in March, likely reinforcing the Fed’s reluctance to cut interest rates anytime soon and underscoring a burden for President Joe Biden’s re-election bid.
Read more »
Fed's preferred inflation gauge shows price pressures stayed elevated last monthA measure of inflation closely tracked by the Federal Reserve remained uncomfortably high in March, likely reinforcing the Fed’s reluctance to cut interest rates anytime soon and underscoring a burden for President Joe Biden’s re-election bid.
Read more »
Fed's preferred inflation gauge shows price pressures stayed elevated last monthA measure of inflation closely tracked by the Federal Reserve remained uncomfortably high in March, likely reinforcing the Fed’s reluctance to cut interest rates anytime soon and underscoring a burden for President Joe Biden’s re-election bid. Prices rose 0.3% from February to March, the same as in the previous month.
Read more »
Fed's preferred inflation gauge shows price pressures stayed elevated last monthA measure of inflation closely tracked by the Federal Reserve remained uncomfortably high in March, likely reinforcing the Fed's reluctance to cut interest rates anytime soon and underscoring a burden for President Joe Biden's re-election bid.
Read more »
Fed's preferred inflation gauge shows price pressures stayed elevated last monthThe positive side to the federal government raising interest rates is you can make more money off your saving accounts.
Read more »