Inflation Remained Low in April, But How Long Can Monetary Policy Remain Tight?

Inflation Remained Low in April, But How Long Can Monetary Policy Remain Tight?

Will the Federal Reserve undershoot its inflation target this year? The Personal Consumption Expenditures Price Index (PCEPI) grew at an annualized rate of 1.2 percent in April 2025, marking the second consecutive month of below-target inflation. PCEPI inflation has averaged 2.1 percent over the last three months and 2.6 percent over the last six months. Core inflation, which excludes volatile food and energy prices, also remained low. Core PCEP…

The Fed is holding interest rates steady as inflation cools and spending slows

The Federal Reserve is staying on pause again, holding interest rates steady as spending cools off and inflation inches closer to its 2% goal. On Friday, Commerce Department data revealed that consumer prices rose 2.1% in April compared to a year earlier, down from 2.3% in March. That puts inflation...

Federal Reserve expected to hold steady as spending slows and inflation cools

The Federal Reserve is staying on pause again, holding interest rates steady as spending cools off and inflation inches closer to its 2% goal. On Friday, Commerce Department data revealed that consumer prices rose 2. 1% in April compared to a year earlier, down from 2. 3% in March. That puts...