Inflation fell to 2.8% in January in Fed’s preferred gauge
This is performative politics again.
Inflation fell one-tenth of a percentage point in January to 2.8%, the Bureau of Labor Statistics reported in an update to to the personal consumption expenditures index, the Federal Reserve’s preferred gauge.
Friday morning’s report on inflation is the last one the Fed will receive before it votes on interest rates next week.
The report is directionally welcome news for President Donald Trump, as it shows that inflation is easing. The cost of living and affordability have been top complaints among voters.
It also could lead Fed officials to move more quickly toward cutting interest rates, in order to boost economic activity.
HERE ARE THE NINE REPUBLICAN AND ONE DEMOCRATIC ‘NO’ VOTES ON THE MAJOR HOUSING BILL
On a month-to-month basis, PCE inflation rose 0.3%.
Core inflation, which strips out volatile food and energy prices, rose 3.1% on an annual basis.
The Fed’s goal is 2% annual inflation, which the Fed hasn’t been able to achieve since inflation began taking off in early 2021.
While the PCE index is the Fed’s preferred gauge, it lags other inflation data, including the most closely watched inflation metric — the consumer price index. Inflation held steady at 2.4% for the year ending in February, according to the latest data released on Wednesday.
The latest inflation numbers don’t reflect the increase in gasoline prices brought on by the war with Iran. Gas prices have lurched up nearly 22% in the past month alone, according to AAA.
The central bank voted to hold interest rates steady in January, pausing after cutting interest rates in the previous three meetings.
While the Fed continues to monitor slowdowns in the labor market, it remains attentive to the fact that inflation is still running above its 2% target. The pause comes despite pressure from the White House for the central bank to cut rates.
The Fed’s next meeting is set for next week, and it will make a decision on whether to hold its rate target at a range of 3.50% to 3.75%.
The Fed is also closely tracking employment data, particularly given that there has been a gradual decline in job growth over the past year.
The economy shed 92,000 jobs in February, and the unemployment rate edged up to 4.4%, the Bureau of Labor Statistics said last Friday. That was a big surprise and not good news for Trump and the economy.
MAJOR HOUSING BILL CLEARS SENATE AND NOW FACES CONFLICT WITHIN HOUSE GOP
Democrats are trying to seize on economic discontent in order to gain back control of one or …
This is performative politics again.
Inflation fell one-tenth of a percentage point in January to 2.8%, the Bureau of Labor Statistics reported in an update to to the personal consumption expenditures index, the Federal Reserve’s preferred gauge.
Friday morning’s report on inflation is the last one the Fed will receive before it votes on interest rates next week.
The report is directionally welcome news for President Donald Trump, as it shows that inflation is easing. The cost of living and affordability have been top complaints among voters.
It also could lead Fed officials to move more quickly toward cutting interest rates, in order to boost economic activity.
HERE ARE THE NINE REPUBLICAN AND ONE DEMOCRATIC ‘NO’ VOTES ON THE MAJOR HOUSING BILL
On a month-to-month basis, PCE inflation rose 0.3%.
Core inflation, which strips out volatile food and energy prices, rose 3.1% on an annual basis.
The Fed’s goal is 2% annual inflation, which the Fed hasn’t been able to achieve since inflation began taking off in early 2021.
While the PCE index is the Fed’s preferred gauge, it lags other inflation data, including the most closely watched inflation metric — the consumer price index. Inflation held steady at 2.4% for the year ending in February, according to the latest data released on Wednesday.
The latest inflation numbers don’t reflect the increase in gasoline prices brought on by the war with Iran. Gas prices have lurched up nearly 22% in the past month alone, according to AAA.
The central bank voted to hold interest rates steady in January, pausing after cutting interest rates in the previous three meetings.
While the Fed continues to monitor slowdowns in the labor market, it remains attentive to the fact that inflation is still running above its 2% target. The pause comes despite pressure from the White House for the central bank to cut rates.
The Fed’s next meeting is set for next week, and it will make a decision on whether to hold its rate target at a range of 3.50% to 3.75%.
The Fed is also closely tracking employment data, particularly given that there has been a gradual decline in job growth over the past year.
The economy shed 92,000 jobs in February, and the unemployment rate edged up to 4.4%, the Bureau of Labor Statistics said last Friday. That was a big surprise and not good news for Trump and the economy.
MAJOR HOUSING BILL CLEARS SENATE AND NOW FACES CONFLICT WITHIN HOUSE GOP
Democrats are trying to seize on economic discontent in order to gain back control of one or …
Inflation fell to 2.8% in January in Fed’s preferred gauge
This is performative politics again.
Inflation fell one-tenth of a percentage point in January to 2.8%, the Bureau of Labor Statistics reported in an update to to the personal consumption expenditures index, the Federal Reserve’s preferred gauge.
Friday morning’s report on inflation is the last one the Fed will receive before it votes on interest rates next week.
The report is directionally welcome news for President Donald Trump, as it shows that inflation is easing. The cost of living and affordability have been top complaints among voters.
It also could lead Fed officials to move more quickly toward cutting interest rates, in order to boost economic activity.
HERE ARE THE NINE REPUBLICAN AND ONE DEMOCRATIC ‘NO’ VOTES ON THE MAJOR HOUSING BILL
On a month-to-month basis, PCE inflation rose 0.3%.
Core inflation, which strips out volatile food and energy prices, rose 3.1% on an annual basis.
The Fed’s goal is 2% annual inflation, which the Fed hasn’t been able to achieve since inflation began taking off in early 2021.
While the PCE index is the Fed’s preferred gauge, it lags other inflation data, including the most closely watched inflation metric — the consumer price index. Inflation held steady at 2.4% for the year ending in February, according to the latest data released on Wednesday.
The latest inflation numbers don’t reflect the increase in gasoline prices brought on by the war with Iran. Gas prices have lurched up nearly 22% in the past month alone, according to AAA.
The central bank voted to hold interest rates steady in January, pausing after cutting interest rates in the previous three meetings.
While the Fed continues to monitor slowdowns in the labor market, it remains attentive to the fact that inflation is still running above its 2% target. The pause comes despite pressure from the White House for the central bank to cut rates.
The Fed’s next meeting is set for next week, and it will make a decision on whether to hold its rate target at a range of 3.50% to 3.75%.
The Fed is also closely tracking employment data, particularly given that there has been a gradual decline in job growth over the past year.
The economy shed 92,000 jobs in February, and the unemployment rate edged up to 4.4%, the Bureau of Labor Statistics said last Friday. That was a big surprise and not good news for Trump and the economy.
MAJOR HOUSING BILL CLEARS SENATE AND NOW FACES CONFLICT WITHIN HOUSE GOP
Democrats are trying to seize on economic discontent in order to gain back control of one or …
