Fed’s preferred inflation gauge shows price pressures stayed elevated last month
WASHINGTON — A measure of inflation closely tracked by the Federal Reserve remained uncomfortably high in March, likely reinforcing the Fed’s reluctance to cut interest rates anytime soon and underscoring a burden for President Joe Biden’s re-election bid.
Friday’s report from the government showed that prices rose 0.3% from February to March, the same as in the previous month. It was the third straight month that the index has run at a pace faster than is consistent with the Fed’s 2% inflation target. Measured from a year earlier, prices were up 2.7% in March, up from a 2.5% annual rise in February.
After peaking at 7.1% in 2022, the Fed’s favored inflation index steadily cooled for most of 2023. Yet so far this year, the index has remained stuck above the central bank’s target rate. More expensive gas and higher prices for restaurant meals, health care and auto repairs and insurance, among other items, have kept the overall pace of price increases elevated.
With new-car prices up sharply in the past few years, auto repair and replacement costs have risen especially fast. Auto insurance, a major driver of inflation in recent months, was up 8% in March from a year earlier.
NEW YORK — The best week for U.S. stocks since Novem
ber closed out with more gains thanks to Alphabet and Microsoft on Friday.
The S&P 500 rallied 1% to finish its first winning week in the last four. The Dow Jones Industrial Average rose 153 points, or 0.4%, and the Nasdaq composite jumped 2%.
Alphabet leaped 10.2% after breezing past analysts’ expectations for profit last quarter. The parent company of Google also said it will start paying a dividend to investors and authorized a program to buy back up to $70 billion of its stock, a signal of how much cash it’s generating. Microsoft, meanwhile, climbed 1.8% after reporting stronger profit and revenue than expected. It cited strong growth in its cloud-computing business as it pushes artificial-intelligence technology to its customers.
Harvey Weinstein will appear in a New York City
court next week, the first step in potentially retrying the film mogul after his 2020 rape conviction was overturned.
New York’s highest court on Thursday threw out Weinstein’s 2020 rape conviction, ordering a new trial. The Manhattan district attorney’s office has said it intends to pursue a retrial, but gave no indication about the agenda for Wednesday’s hearing.
“We will do everything in our power to retry this case, and remain steadfast in our commitment to survivors of sexual assault,” the district attorney’s office said in a statement Friday.
WASHINGTON — President Joe Biden’s administration is
indefinitely delaying a longawaited menthol cigarette ban, a decision that infuriated anti-smoking advocates but could avoid a political backlash from Black voters in November. In a statement Friday, Biden’s top health official gave no timeline for issuing the rule, saying only that the administration would take more time to consider feedback, including from civil rights groups.
LONDON — King Charles III is back.
The 75-year-old monarch will resume some public duties next week following a three-month break to focus on his treatment and recuperation after he was diagnosed with an undisclosed type of cancer, Buckingham Palace said Friday.
Charles will mark the milestone by visiting a cancer treatment center on Tuesday, the first of several public appearances he will make in the coming weeks, the palace said. One of his first major engagements will be to host a state visit by the emperor and empress of Japan in June.
BALTIMORE — The first cargo ship passed through a newly
opened deep-water channel in Baltimore on Thursday after being stuck in the harbor since the Francis Scott Key Bridge collapsed four weeks ago, halting most maritime traffic through the city’s port.
The Balsa 94, a bulk carrier sailing under a Panama flag, passed through the new 35-foot channel headed for Saint John, New Brunswick, Canada. Two more commercial ships followed later Thursday, including a vehicle carrier headed to Panama.
NEW YORK — Home products retailer Williams-Sonoma
will have to pay almost $3.2 million for violating a Federal Trade Commission “Made in USA” order.
Williams-Sonoma was charged with advertising multiple products as being “Made in USA” when they were in fact manufactured in other countries, including China. That violated a 2020 commission order requiring the San Francisco-based company to be truthful about whether its products were in fact made in the U.S.
The FTC said Friday that Williams-Sonoma has agreed to a settlement, which includes a $3.175 million civil penalty. That marks the largest-ever civil penalty seen in a “Made in USA” case, the commission said.
Poultry producers will be required to bring salmonella
bacteria in certain chicken products to very low levels to help prevent food poisoning under a final rule issued Friday by U.S. agriculture officials. When the regulation takes effect in 2025, salmonella will be considered an adulterant — a contaminant that can cause foodborne illness — when it is detected above certain levels in frozen breaded and stuffed raw chicken products.