Federal Reserve keeps cautious interest rate approach despite inflation

Inflation data for February shows a 0.2% increase in the Consumer Price Index (CPI), down from January's 0.5%. Yearly inflation is now at 2.8%, a decrease from 3% in January. Despite this slight easing, the Federal Reserve is expected to maintain its cautious approach to interest rate cuts, as inflation remains above the 2% target. The moderation in inflation was influenced by lower gasoline and food prices, although egg prices rose significantly. Concerns persist about future inflation due to new tariffs on China and steel, which could raise prices in housing and auto industries. The Atlanta Federal Reserve's tracker indicates a concerning GDP rate of minus-2.4% for the first quarter.