The Federal Reserve's key inflation gauge rose more than expected in February as consumer spending increased less than forecast, according to CNBC. Core PCE inflation rose more than expected in February, marking the highest monthly increase over a year and exceeding economists’ projections. Consumer spending rose less than expected in February, while personal income increased more than anticipated, according to the Bureau of Economic Analysis. The Federal Reserve prioritizes the PCE inflation reading because it better reflects consumer behavior. Analysts say the Fed will likely maintain its cautious stance on rate cuts due to persistent inflation and tariff-related uncertainty.
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00:00It's Benzinga bringing Wall Street to Main Street.
00:02Federal Reserve's key inflation gauge rose more than expected in February as consumer spending
00:06increased less than forecast, according to CNBC. Core PCE inflation rose more than expected in
00:11February, marking the highest monthly increase in over a year and exceeding economists' projections.
00:16Consumer spending rose less than expected in February, while personal income increased more
00:20than anticipated, according to the Bureau of Economic Analysis. The Federal Reserve
00:24prioritizes the PCE inflation reading because it better reflects consumer behavior. Analysts
00:29say the Fed is likely to maintain its cautious stance on rate cuts, persistent inflation,
00:34and tariff-related uncertainty. For all things money, visit Benzinga.com slash GSTV.