According to a survey, the Federal Reserve's preferred measure of underlying price pressures, the Personal Consumption Expenditures Price Index, is expected to have stayed higher in February.
The PCE price index is estimated to have increased by 0.4% in February from a month earlier in the month, which would be its largest gain since June, according to a Bloomberg survey. The PCE price index shows changes in the prices of goods and services purchased by consumers in the United States.
The overall measure is projected to have a 5.1% advance. The report pointed out that both estimates are more than double the goal of the Fed. The data is scheduled to be released on Thursday.
The central bank would be in a dilemma if it turns out to be true, as the banking crisis hasn't abated. The central bank has not responded to the pause button in March policy, but it raised the policy rate by 25 basis points despite expectations from certain corners of Wall Street.
Federal Reserve officials revised their PCE inflation forecast for the year to 3.3% from 3.1% in December, according to a summary of economic projections released last week. The inflation forecast for the PCE is 3.6% compared to 3.5% earlier in the day.
Fed Comments: Market participants will be watching out for remarks by Fed officials this week, including Fed Governor Philip Jefferson, Boston Fed President Susan Collins, Richmond Fed President Tom Barkin, and Governors Christopher Waller and Lisa Cook.
The report said that the Fed Vice Chair for Supervision Michael Barr will testify before the Senate Banking Committee and the House Financial Services Committee on recent bank failures.
Read Next: Minneapolis Fed s Kashkari Says Unclear On Impact Of Banking Stresses On Economy Have To Do Less Work With Federal Funds Rate