Core inflation in February hits 2.8%, hotter than expected; spending increases 0.4%
Portfolio Pulse from
The February PCE inflation report showed core inflation at 2.8%, higher than the 2.7% forecast. Consumer spending increased 0.4%, while personal income rose 0.8%. The data suggests the Federal Reserve may delay interest rate cuts due to persistent inflationary pressures and potential trade tariff impacts.
March 28, 2025 | 1:00 pm
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NEGATIVE IMPACT
Stock market futures declined following the release of higher-than-expected inflation data, indicating potential short-term market volatility.
Higher inflation reduces likelihood of near-term rate cuts, potentially dampening market optimism and stock valuations.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 80