Core PCE is still projected to remain elevated at 2.7% (above the Fed’s target), and unemployment is now expected to increase more significantly from 4.0% to potentially above 4.3%.

As the Fed considers its next moves during a two-day meeting this week, most economic data looks solid. Yet President Trump’s tariffs may push inflation higher in the coming months.

As the Fed considers its next moves during a two-day meeting this week, most economic data looks solid. Yet President Trump’s tariffs may push inflation higher in the coming months.

As the Fed considers its next moves during a two-day meeting this week, most economic data looks solid. Yet President Trump’s tariffs may push inflation higher in the coming months.

The Fed is in “an uncomfortable purgatory,” said Diane Swonk, chief economist at accounting giant KPMG. “Without the threat of tariffs, we would be seeing the Fed cut.

WASHINGTON (AP) — The U.S. economy is mostly in good shape but that isn’t saving Federal Reserve chair Jerome Powell from a spell of angst. As the Fed considers its next moves during a two-da… ...