Inflation rate leaps to nearly 3-year high after Iran war. The Fed’s hands are now tied.

the fed's preferred inflation gauge jumped in march — the biggest monthly increase in nearly three years. the core pce price index, which strips out food and energy, rose 0.4% for the month, pushing the annual rate to 2.8%. that's up from 2.7% in february. the spike follows the iran war, which disrupted global oil supplies and sent energy costs higher. the fed had been signaling rate cuts later this year, but this data effectively takes that off the table. powell now faces a hard choice: fight inflation or support a slowing economy.