Inflation Ticks Up While Consumer Spending Jumps; Fed Rate Cuts May Be Delayed

• Annual PCE inflation rose in February for the first time since September, a possible sign the Fed may delay interest rate cuts • Core PCE inflation, which strips out food and energy, also ticked up on a monthly basis after slowing late last year
• Household spending jumped by more than expected in February, indicating consumers are drawing down savings to finance purchases • Fed Chair Powell said policymakers won't "overreact" to recent higher inflation readings and will stay the course on gradually lowering inflation
• The futures market predicts the Fed's first rate cut could come in June, but recent data suggests the central bank may wait until July to start decreasing rates