An inflation gauge closely watched by the Federal Reserve rose slightly last month, while some underlying prices pressures showed signs of easing. The latest inflation figures arrive as President Donald Trump has threatened to impose big import taxes on goods from Canada and Mexico,

Chicago Federal Reserve Bank President Austan Goolsbee said Friday's inflation data was a bit better than expected and helps give him comfort that inflation is on path to 2%, adding that he still expects the Fed's policy rate to be "a fair bit" lower in 12 to 18 months than it is today.

Even as economies shift after several years of aggressive salary growth combined with talent shortages, salary increases likely will continue to outpace inflation. Why?

Federal Reserve Governor Michelle Bowman said she wants to see additional progress on inflation before the central bank lowers interest rates further, and questioned how restrictive policy might be given the economy’s strength.

Fresh tariffs amid high inflation are making the Fed’s job uniquely difficult and feeding uncertainty about what to expect for interest rates this year.

Dow, S&P 500, and Nasdaq futures are rising in premarket trading Friday as the stock market waits for news on President Donald Trump's threats to apply tariffs on Mexico, Canada, and China. Also PCE inflation data are due.

On a three-month annualised basis — seen as a more accurate picture of the trajectory of inflation — the core PCE price gauge rose 2.2pc, the least since July.

An inflation gauge closely watched by the Federal Reserve rose slightly last month, the latest sign that some consumer prices remain stubbornly elevated, even as inflation is cooling in fits and starts.

A spike in energy prices helped to lift the headline PCE price index in December. The combined cost of gasoline, electricity, and other energy goods and services jumped 2.7% durin

The Treasury Department has also eliminated the option of buying as much as $5,000 in extra inflation bonds, beyond the $10,000 annual limit.

WASHINGTON (Reuters) - Federal Reserve governor Michelle Bowman said she still expects declining inflation to allow further interest rate cuts this year, but feels rising wages, buoyant financial markets, geopolitical risks, and upcoming administration policies could slow the process and keep price pressures elevated.