by Jason Schenker
Forbes
Consumer inflation is one of the most important economic reports this week. Given the downside risks to growth, a recent tepid jobs report, and falling confidence on the back of tariff and trade uncertainty, easing inflation could give the Federal Reserve the license it needs to cut interest rates sooner rather than later.
Consumer Inflation Is The Fed’s Top Priority
This week’s release of the February Consumer Price Index report follows a hot pace of year-on-year inflation rates in January when total CPI was 3% and core CPI was 3.3%. The Fed’s consumer inflation target is 2%. Fortunately, the January Personal Consumption Expenditures inflation rates were at more benign year-on-year rates of 2.5% for total PCE and 2.6% for the core PCE.