Fed’s preferred inflation gauge rose 2.8% in February — reducing hopes for quicker rate cuts

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2 years ago

March 29, 2024

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The core Personal Consumption Expenditure price index — the Federal Reserve’s preferred gauge of inflation — rose 0.3% in February and 2.8% year-over-year, according to the latest federal data.

The numbers were in line with analyst expectations — making it more likely that the central bank will keep interest rates at their current levels rather than rush into interest rate cuts that are eagerly anticipated by Wall Street investors.

The PCE index excludes volatile food and energy prices. When food and energy costs are factored in, headline PCE clocked in at 0.3% for February and 2.5% year-over-year — compared to estimates for 0.4% and 2.5%.

The main inflation gauge — the consumer price index — rose 3.2% in February yet another stubbornly high figure that wont inspire the Fed to slash interest rates in the short term.

Februarys Consumer Price Index which tracks changes in the costs of everyday goods and services came in a tick higher than the 3.1% headline inflation figure economists surveyed by FactSet expected.

Consumer prices have not fallen year-over-year since President Joe Bidens term began in January 2021.

The stock market was closed on Friday in observance of Good Friday.

Last week, the Federal Reserve kept decades-high interest rates unchanged following its meeting, though it made clear that it anticipates making three cuts this year.

Federal Reserve Chair Jerome Powell said recent high inflation readings had not changed the underlying story of slowly easing price pressures, but added that recent data also had not bolstered the central banks confidence that the inflation battle has been won.

Speaking after the two-day policy meeting, Powell said the timing of the much-anticipated reductions still depended on officials becoming more secure that inflation can continue to decline towards the Feds 2% target in an economy that continues to outperform expectations.

Investors, however, are betting that the cuts will begin in June.

Efforts by the Fed to tame inflation and steer a “soft landing” — bringing interest rates down without tilting the economy into a recession — have been complicated by the fact that unemployment is low while the US economy continues to hum along.

The US economy grew at a solid 3.4% annual pace from October through December, the government said Thursday in an upgrade from its previous estimate.

The government had previously estimated that the economy expanded at a 3.2% rate last quarter.

The Commerce Departments revised measure of the nations gross domestic product — the total output of goods and services — confirmed that the economy decelerated from its sizzling 4.9% rate of expansion in the July-September quarter.

But last quarters growth was still a solid performance, coming in the face of higher interest rates and powered by growing consumer spending, exports, and business investment in buildings and software.

It marked the sixth straight quarter in which the economy has grown at an annual rate above 2%.

For all of 2023, the US economy — the worlds biggest — grew 2.5%, up from 1.9% in 2022.

In the current January-March quarter, the economy is believed to be growing at a slower but still decent 2.1% annual rate, according to a forecasting model issued by the Federal Reserve Bank of Atlanta.

Thursdays GDP report also suggested that inflation pressures were continuing to ease.

The Federal Reserves favored measure of prices — called the personal consumption expenditures price index — rose at a 1.8% annual rate in the fourth quarter.

That was down from 2.6% in the third quarter, and it was the smallest rise since 2020 when COVID-19 triggered a recession and sent prices falling.

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Foligno takes puck off hand, will miss 4 weeks

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1 hour ago

November 16, 2025

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Foligno takes puck off hand, will miss 4 weeks

Ryan S. ClarkNov 16, 2025, 12:28 AM ET
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Chicago Blackhawks captain Nick Foligno will miss four weeks after injuring his hand Saturday in his team’s 3-2 win against the Toronto Maple Leafs, coach Jeff Blashill said.

Foligno, 38, suffered the injury with 90 seconds left in the second period when he was skating near the top of the Blackhawks’ defensive zone and Jake McCabe‘s shot on net deflected off Foligno’s hand.

Foligno immediately hunched over and favored his hand while skating back to the Blackhawks’ bench. Foligno, who did not return for the third period, finished with three shots on goal and logged 10:41 in ice time.

The absence of Foligno, who has six points in 15 games, means the Blackhawks will be without their fourth-line center who was anchoring a combination featuring Sam Lafferty and Landon Slaggert. His injury is also the second to impact the Blackhawks’ forward group with winger Jason Dickinson currently on injured reserve.

After finishing last season with the second-fewest points in the NHL, the Blackhawks (9-5-4) have emerged into one of the biggest surprises through the first quarter of the regular season. With their win against the Maple Leafs, they enter Sunday third in the Central Division and a point ahead of the Vegas Golden Knights and Seattle Kraken in the Western Conference wild-card race.

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Devils’ Hughes out 8 weeks after finger surgery

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1 hour ago

November 16, 2025

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Devils' Hughes out 8 weeks after finger surgery

New Jersey Devils star Jack Hughes had successful surgery on his finger Saturday, the team announced. The expected recovery time is eight weeks, though he will be reevaluated in six weeks.

According to sources, Hughes injured his hand in a “freak accident” that involved getting cut by glass at a team dinner Thursday.

Hughes’ procedure was performed by Dr. Robert Hotchkiss at the Hospital for Special Surgery in New York City.

The 24-year-old was off to a terrific start for New Jersey, which is 12-4-1 and atop the Metropolitan Division entering Friday. The American-born star has 10 goals and 20 points in his first 17 games.

The injury will create an interesting predicament for Team USA ahead of the 2026 Olympics in Milan. Hughes’ brother, Quinn, has already been named to the team while the Devils star was expected to be a front-runner for the roster. Federations must submit rosters by Dec. 31. The Devils’ projected return-to-play timeline is around the second week of January. The Olympic men’s hockey tournament begins Feb. 11.

Olympic rosters feature 25 players, which is two more spots than teams had at Four Nations.

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Canucks sign ex-Leaf Kampf to one-year deal

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1 hour ago

November 16, 2025

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Canucks sign ex-Leaf Kampf to one-year deal

Ryan S. ClarkNov 15, 2025, 06:36 PM ET
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Center David Kampf signed a one-year contract with the Vancouver Canucks on Saturday, just a day after the Toronto Maple Leafs terminated his previous deal.

Kampf, whose deal with the Canucks will carry a $1.1 million cap hit, was entering the third year of his four-year contract with the Maple Leafs that was worth $2.4 million annually.

The Leafs waived Kampf before the season, and he began the year with their AHL affiliate. Kampf played four games in the AHL before taking a voluntary leave of absence, which wasn’t sanctioned by the Leafs, to evaluate his options.

Kampf, who scored 5 goals and 13 points in 59 games last season, gives the Canucks a two-way center who has logged more than 110 short-handed minutes in seven straight seasons.

The Canucks have faced defensive challenges under first-year coach Adam Foote, who already has had to navigate injuries to Filip Chytil, Thatcher Demko, Derek Forbort, Filip Hronek and Quinn Hughes, among others.

Entering Saturday, the Canucks were allowing 3.53 goals per game, which is the fifth most in the NHL, while their penalty kill is the worst in the league at 66.1%. The Los Angeles Kings set the NHL record for the worst penalty kill in league history with a 68.2% success rate in the 1979-80 campaign.

Kampf also provides a veteran presence at center for the Canucks, who entered the season with questions at the position. Those concerns have intensified with Teddy Blueger and Chytil on injured reserve.

Entering Saturday, the Canucks (8-9-2) had the second-fewest points in the Pacific Division but were two points behind the Chicago Blackhawks and Winnipeg Jets for Western Conference wild-card spots.