Wells Fargo: U.S. core inflation in March will be the lowest this year

Odaily News Wells Fargo economist Sarah House said in her preview of the U.S. CPI in March: March's CPI data may appear to be a bit lagging. But it should give us an idea of how the changing trade environment is beginning to affect prices. March looks set to be the low point for core inflation this year as tariffs lead to faster price increases. Coupled with growing concerns about a self-brewed recession in the U.S., this has left the Federal Reserve in "wait-and-see" mode on interest rates. While there is still much uncertainty about the duration, transmission effects, and second-round price impacts of these tariffs, the trend is clear. Current trade policies "pose new challenges to controlling inflation." For more than a year, the Fed's final stages of its fight against inflation have been difficult, highlighting the difficulty of completely eliminating inflation without significantly weakening demand. (Jinshi)