Rising prices on groceries, gas, and used cars make it less likely that the Federal Reserve will cut interest rates anytime soon.
Watch Federal Reserve Chair Jerome Powell testify before the House Financial Services committee.
The consumer price index increased 3% in January from a year ago, Wednesday’s report from the Labor Department showed, up from 2.9% the previous month. It has increased from a 3 1/2 year low of 2.4% in September.
Candidate Trump pledged to reduce prices. Most economists worry that his proposed tariffs could at least temporarily increase costs.
Federal Reserve Chair Jerome Powell will likely be asked Wednesday by the House Financial Services Committee what the Fed will do.
Trump posted on social media early Wednesday that interest rates should be lowered to “go hand in hand with upcoming Tariffs!!!”
