The Fed Faces a Tariff-ied Consumer | S2 E026 | 03-28-25

Markets with Megan: A Quick Financial Markets Update · Mar 28, 2025 · 4m · transcript

The latest economic data shows inflation continuing to rise despite consumer spending weaknesses, creating a complex picture for markets and policymakers. Market reactions suggest growing concerns about economic growth taking precedence over inflation worries.

• Monthly PCE (the Fed's preferred inflation indicator) showed core inflation rising 0.4%, exceeding expectations

• Year-over-year core PCE now at 2.8%, up from January's 2.6%

• Personal income increased 0.8% while spending rebounded to 0.4% growth

• Service spending dropped for the first time in three years

• Consumer sentiment fell to…