US Inflation Softens but Continues to Stay High, Creating a Dilemma for the Fed

1 year ago
20

Although US consumer price hikes slowed down from January to February, they remained at an elevated level, which is currently posing a challenge for the Federal Reserve, especially during this critical time for the financial system.

According to the government, prices rose by 0.4% in February, slightly lower than January’s 0.5% increase. However, when excluding the volatile food and energy costs, known as core prices, the prices rose by 0.5% in February, slightly higher than January’s 0.4% gain. The Fed closely monitors the core measure as a means to assess the underlying inflation pressures.

Despite prices increasing much more rapidly than the Fed desires, some economists anticipate that the central bank will halt its one-year-long series of interest rate hikes when it convenes next week, the Associated Press reported.

"US inflation eases but stays high, putting Fed in tough spot"
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