Crucial Inflation Metric Was 2.8% In February As Tariffs Loom Over Inflation Stuck Above 2% Target
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The Federal Reserve's preferred inflation metric, the core PCE index, remained at 2.8% in February, above the central bank's 2% target. Economists anticipate potential inflationary pressures from upcoming tariffs, which could complicate the Fed's efforts to control price increases. The personal saving rate also dropped to 4.6%, lower than its historical average of 5.7%.
March 28, 2025 | 12:45 pm
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NEGATIVE IMPACT
The S&P 500 ETF may experience market uncertainty due to ongoing inflation concerns and potential tariff-induced price increases.
Persistent inflation above the Fed's target and potential tariff-related price increases could lead to continued monetary tightening, negatively impacting broad market sentiment.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 80