New data shows Inflation Stuck as Trump’s Trade Wars Intensify, Reveals PCE Data

Inflation remains a persistent challenge for the U.S. economy as indicated by the latest Personal Consumption Expenditures (PCE) data, released on March 28, 2025. Economists are adjusting their expectations amidst escalating trade tensions fueled by renewed tariffs under former President Trump’s recent policy maneuvers. The PCE index, a preferred inflation gauge by the Federal Reserve, continues to exhibit unyielding price increases, affecting consumer spending and economic stability. These economic strains arise parallel to Trump’s intensifying trade war strategies, raising concerns about long-term impacts on global and domestic markets. Analysts warn that as tariffs rise, so do the costs of goods and services, burdening American households and complicating the fight against inflation. This complex economic landscape pressures policymakers to balance trade policies with monetary measures to stabilize the economy. As this scenario unfolds, understanding these economic indicators becomes critical for investors and consumers navigating these uncertain times.

The New York Times