March's personal consumption expenditures price index pointed to a softening in inflationary pressures across the US, according to the Bureau of Economic Analysis, potentially giving the Federal Reserve room to move when it comes to monetary policy.
Source: Sharecast
The PCE price index grew 2.3% year-on-year in March, down from February’s revised 2.7% print. On a monthly basis, the index was flat.
Core PCE, which strips out volatile food and energy prices, rose 2.6% year-on-year, below February's 2.8% clip, and was unchanged on a monthly basis.
With March's PCE reading indicating that inflationary pressures may be easing, the central bank may now have room to start cutting interest rates again, particularly amid fears that Donald Trump's "Liberation Day" tariffs and ensuing trade spats with friend and foe alike will weigh on broader economic activity.
Reporting by Iain Gilbert at Sharecast.com
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