Inflation Surges in February, Fed's 2% Target in Sight

0:00Inflation didn't cool off in February, folks. The Federal Reserve's favorite gauge, personal consumption expenditures, jumped 0.4% from January, matching the prior month, but... holding steady at 2.8% higher than last year. Core inflation, stripping out food and energy, did the same, up 0.4% monthly and 3% yearly. This heat was building even before the Iran War jacked up gas prices. That monthly pace, if it keeps rolling, would blow past the Fed's 2% target easy. Economists like Nationwide's Chief say were set for a sharp spike in March data. Americans felt the pinch hard. Incomes dropped 0.1%, the first dip since October, while spending only crept up after accounting for higher prices. It's eating into buying power big time. Friday's Consumer Price Index report, will hit harder, expected to show a huge 0.9% monthly surge and 3.4%. Yearly, thanks to those gas hikes that'll crank up Fed worries,

1:02making rate cuts way less likely. Still, the economy could clock 2% growth this quarter, fueled by AI investments and government spending rebounding from last year's shutdown. Keep watching those numbers. From your city, powered by AI, this is Vancouver News today. I'm Corey with The Story.