U.S. inflation up again in March in latest sign that price pressures remain elevated

Consumer inflation remained persistently high last month, boosted by gas, rents, auto insurance and other items, the government said Wednesday in a report that will likely give pause to the Fed eral Reserve as it weighs when and by how much to cut interest rates this year.

The figures will likely disappoint the White House as well, with Republican critics of President Joe Biden who have sought to pin the blame for high prices on the president and use it as a cudgel to derail his re-election bid. Polls show that despite a healthy job market, a near-record-high stock market and the steady drop in inflation, many Americans blame Biden for high prices.

Chair Jerome Powell has stressed in recent months that the Fed’s policy-makers need more confidence that inflation is steadily slowing to the Fed’s 2 per cent target. Powell’s stance has elevated the profile of the monthly inflation reports, which can determine when and by how much – or even whether – the Fed will reduce its key rate this year. Rate cuts would lead, over time, to lower borrowing costs for businesses and consumers and could also fuel a stock market rally.

Grocery costs, though, were unchanged last month and are 2.2 per cent higher than they were a year ago, providing some relief to consumers after the huge spikes in food prices in 2022 and early 2023. Last month, employers ramped up hiring, and the unemployment rate fell to a low 3.8 per cent from 3.9 per cent. A report on manufacturing also showed that factory output expanded after more than a year of contraction.

Fed Inflation Rate Prices Economy Fed President Kathy Bostjancic Federal Reserve Bank Of Dallas Jerome Powell

Canada Latest News, Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Gold price hits record high as Federal Reserve leans dovishThe Kitco News Team brings you the latest news, videos, analysis and opinions regarding Precious Metals, Crypto, Mining, World Markets and Global Economy.
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »

An inflation gauge closely tracked by the Federal Reserve shows price pressures easing graduallyThe government reported Friday that prices rose 0.3% from January to February, decelerating from a 0.4% increase the previous month in a potentially encouraging trend for President Joe Biden’s re-election bid
Source: globeandmail - 🏆 5. / 92 Read more »

An inflation gauge closely tracked by the Federal Reserve shows price pressures easing graduallyWASHINGTON (AP) — A measure of inflation that is closely tracked by the Federal Reserve slipped last month in a sign that price pressures continue to ease. The government reported Friday that prices rose 0.
Source: SooToday - 🏆 8. / 85 Read more »

An inflation gauge closely tracked by the Federal Reserve shows price pressures easing graduallyWASHINGTON (AP) — A measure of inflation that is closely tracked by the Federal Reserve slipped last month in a sign that price pressures continue to ease...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Driving ban imposed on Reserve Mines man; Cape Breton court report for March 28, 2024Explore stories from Atlantic Canada.
Source: SaltWire Network - 🏆 45. / 63 Read more »

Federal Reserve expected to cut rates, lift Biden's prospectsExplore stories from Atlantic Canada.
Source: SaltWire Network - 🏆 45. / 63 Read more »