Inflation Surges, Fed Pauses Rate Cuts

0:00On April 30, inflation hit a rough patch in March, spiking 0.7% from February, the biggest jump in months, thanks to gas prices. Soaring 21% amid the Iran War, year over year, prices climbed 3.5%, the shoppers rise in nearly three years, pushing things further from the Fed's 2% target. Core inflation, stripping out food and energy, still rose 0.3% last month, and 3.2% from a year ago, up from February's mark. Fed chaired Jerome Powell made it clear they're pausing rate cuts, likely for months, to watch how this plays out after three reductions last year. Folks are filling the pinch at the pump nationwide, with everyday costs, like clothing of 1% in March, even as groceries dipped at tiny 0.1%. Powell acknowledged the pain, but the Fed's eyes are on core trends to decide next steps. Before spending held strong, jumping 0.9% showing real resilience even after price tweaks,

1:02the economy grew at a 2% annual pace in the first quarter, picking up from last year's sluggish 0.5% finish. As energy costs ripple through, the Fed stays vigilant, balancing growth against this inflation surge, keeping rates steady for now while we all ride, out higher living expenses. This has been Global News Today, powered by AI.