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What happened: U.S. inflation rose 5% in March compared to last year, down from 6% reported for February and below the 5.1% Dow Jones estimate. Core CPI rose 5.6% YoY and 0.4% month to month. Transportation services, including airfare, had the largest increase YoY at 13.9%. Why it matters: The Fed has been raising rates since March 2022, hoping to bring down inflation to its target 2% annual increase. U.S. inflation peaked at 9.1% in June 2022, its highest since 1980. The Fed has raised its federal funds rate from near zero to a range of 4.75% to 5%. Where to see the impact: The Fed’s interest rate hikes have impacted various sectors of the economy, from banking to real estate to tech. The tech sector laid off more than 150,000 people in 2022, and the layoffs do not appear to be easing as multiple firms have announced job cuts this year. |
