In February, inflation cooled more than anticipated, with the consumer price index (CPI) rising by 2.8% year-over-year, below the predicted 2.9%. This marks a positive shift after a series of months where inflation rates had been rising. Jerome Powell noted the challenges involved in sustainably managing inflation. Economists warn that ongoing tariffs from the current administration could jeopardize recent progress by pushing inflation rates higher. The forthcoming Federal Open Market Committee meeting will likely focus on these new inflation figures and recent employment data to guide interest rate decisions.
The path to sustainably returning inflation to our target has been bumpy, and we expect that to continue, said Federal Reserve chair Jerome Powell.
The focus by the president on tariffs risks reigniting inflation which would be most unfortunate given the progress which has been seen over the past couple of years, said Mark Hamrick, Bankrate's senior economic analyst.
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