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.
