by Marco Quiroz-Gutierrez
Yahoo! Finance
Several types of insurance, including home and car insurance, have surged over the past few years, and it’s hurting the Fed’s effort to get interest rates down to its 2% target, Powell said in congressional testimony last week.
“Insurance of various different kinds—housing insurance, but also automobile insurance, and things like that—that’s been a significant source of inflation over the last few years,” he said.
On Tuesday, data from the Bureau of Labor Statistics showed that its metric for auto insurance, which covers physical damage, liability, and miscellaneous insurance coverage for private passenger vehicles, increased 20.6% over the past year and climbed 0.9% in February compared to the month prior.