A closely watched inflation gauge cooled last month in a sign that prices were steadily easing before most of President Donald Trump’s tariffs were implemented. At the same time, consumers accelerated their spending,

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

Inflation cooled a bit last month, but don't expect interest rates to drop, too. Inflation rose 2.3% year over year in March, according to the latest Personal Consumption Expenditures (PCE) data released today. That's down from the 2.5% annualized increase in February but slightly higher than the forecasted 2.2% increase.