Consumer Inflation Expectations Drop While Prices Rise, Fed Waits for More Evidence Before Rate Cuts

• Consumers increasingly confident inflation will continue falling - UMich survey shows expected inflation at 2.9% next year, down from 3% in February

• Overall picture for price declines has become murkier recently - January and February CPI readings came in higher than expected

• Fed Chair Powell said greater confidence in inflation decline needed before rate cuts

• Economists expect core PCE inflation rose 0.3% month-over-month in February, 2.8% year-over-year

• UMich consumer sentiment index rose to 79.4 in March from 76.5 in February