Jerome Powell, president of the Federal Reserve, explains how policy makers will work to determine whether tariffs are already contributing to inflation.
Federal Reserve Favorite inflation gauge Prices have increased in February, which exceeds the central bank’s target level amidst ongoing efforts to reduce inflation.
The Department of Commerce said on Friday that Individual consumption expenditure The index increased 0.3% from the pre -month and 2.5% on an annual basis. Those figures were in line with the estimates of the economists voted by LSEG.
The core PCE, which excludes unstable food and energy prices, increased 0.4% for the month and 2.8% from a year ago, slightly higher than an estimate of 0.3% and 2.7% respectively.
Federal Reserve Policy Manufacturers are focusing on PCE headline figure as they try to slow down their target speed of 2%, although they see core data as a better indicator of inflation. The headline PCE was unchanged up to 2.5% from January, while the core PCE was more than 2.6% last month.
Federal Reserve Economy, leaves unchanged interest rate unchanged amid uncertainty on inflation
Goods prices An increase of 0.4% on an annual basis in February, slower compared to 0.6% reported in January – although the prices of goods were relatively flat or were also declining in the earlier months. Prices for services in February were 1%, a slightly slower compared to the 1.6% annual growth reported last month.
wages and salaries In February, there was an increase of 0.4% on a monthly basis, which was 0.2% a month ago.
Personal consumption expenditure (PCE) index for February was largely corresponding to economists’ expectations, although the main prices were slightly higher than the estimated. (Through Hannah Beer / Bloomberg Getty Image / Getty Image)
personal Savings rate The percentage of disposable income was 4.6% in February, which was more than 4.3% last month and an increase above 3.3% to 4.3% was in the last half of 2025.
Trump needle federal reserve after no rate cut
Commerce Department comes as a report federal Reserve Before its next policy meeting in May is assessing economic data as it monitors inflation and labor market health.
Federal Reserve Chairman Jerome Powell said in a press conference last week, when Fed kept the rates stable for his second direct meeting, that the central bank is not in a hurry to cut interest rates and will see to assess the impact of the tariff of Trump administration on inflation.
Federal Reserve Chair Jerome Powell has indicated that the fed is not in a hurry to cut rates as it monitors inflation and labor market health. (Michael M. Santiago / Getty Images / Getty Images)
Ellen Zentner, the chief economic strategist of Morgan Stanley Wealth Management, said, “It seems that ‘Weight-And-C’ Fed is still waiting.” “Today’s high-to-adampted inflation reading was not exceptionally warm, but it is not going to speed up the fed timeline to cut interest rates, especially given the uncertainty around the tariff.”
Get Fox Business when you click here
The market hopes that the Fed will release unchanged rates for the third time when it is found in early May. According to the CME Fedwatch Tool, the probability of stability of rates was more than 90% on Friday, more than 85% a week ago.
