"US Economy: Inflation Rises to 2.8% Annually, Growth Revised Up to 3.4%"

The key inflation gauge, the personal consumption expenditures price index, rose 2.8% annually in February, in line with expectations, potentially keeping the Federal Reserve from considering interest rate cuts. The core PCE inflation, excluding food and energy, increased 2.8% on a 12-month basis, while consumer spending surged 0.8% on the month, indicating additional inflation pressures. The Fed targets 2% annual inflation, and while the numbers are not ideal, they are not unexpected. The release comes after the Fed held its benchmark rate steady and indicated it has not seen enough progress on inflation to consider cutting, with market expectations aligning with the Fed's projections for three rate cuts this year.