Inflation Rate Slows and Almost hits FED’s 2% goal

The inflation rate slowed to 2.1% in April, nearing the Federal Reserve's 2% goal, according to data released Friday. The personal-consumption expenditures (PCE) price index increased by just 0.1% in April, marking two consecutive months of minimal growth and matching the lowest inflation since the pandemic began.

While these numbers indicate progress toward the Fed’s target, uncertainty remains over whether this improvement can persist amid ongoing trade tensions.

“If there wasn’t a trade war going on, we all might have been impressed by the resumption of inflation progress and the return of headline inflation to target,” said Ali Jaffery, economist at CIBC Capital Markets. “Today’s data and the unpredictability of trade policy in Washington will reinforce the Fed’s desire to wait things out.”