Inflation slowed sharply in March, moving closer to the Federal Reserve’s 2% target, while tariff-induced consumer spending continued to fuel the economy.

Inflation cooled and consumer spending — especially on automobiles — surged in March as households made purchases ahead of a raft of new tariffs from the Trump administration. The personal

U.S. consumer spending increased solidly in March as households boosted purchases of motor vehicles to avoid higher prices and shortages due to tariffs, but that did little to change economists' views that the economy had shifted into lower gear.