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Forbes
111 days

Key Inflation Measure Slowed To Multiyear Low In March—But Tariff Bump On The Horizon

1. PCE index rose 2.3%, slightly above forecasts of 2.2%. 2. Core PCE inflation remains above the Fed's 2% goal since early 2021. 3. Economic contracted 0.3% in Q1 2025, signaling recession concerns. 4. Trump's tariffs may influence future inflation rates. 5. Only 9% odds of a Fed rate cut at upcoming meeting.

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FAQ

Why Bearish?

Rising inflation above targets and economic contraction suggest slow growth, affecting S&P 500 negatively, as experienced in previous rate-hike cycles.

How important is it?

Current economic indicators and Fed attitudes toward inflation suggest volatility in S&P 500, influencing investor sentiment and stock valuations.

Why Short Term?

Upcoming Fed meeting could trigger immediate market reactions, similar to past Fed announcements impacting stock movement.

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