Today, the Federal Reserve released data from its preferred inflation gauge, which shows that prices increased more than expected in February.
The release comes one week after Jerome Powell announced the Fed’s decision to maintain steady interest rates while increasing its inflation projection.
The Fed data released this morning shows that the Personal Consumption Expenditures (PCE) index rose 0.4% during February, well above economists’ expectations and exceeding the 0.3% increase seen in January.
The PCE, which is closely watched by the central bank, also indicates that consumers are exercising caution, as the average American’s personal spending rose by 0.4% in February, falling short of economists’ expectations for a 0.5% increase.
The report indicates that inflation remains above the Fed’s 2% target.
By CEO NA Editorial Staff
