Gold Grinds Higher, Wall Street Falls As Tariff-Inflation Combo Hammer End-Of-Week Risk Appetite

Risk appetite is on track to end the week on a negative note. Investors continue to trim their equity exposure amid the threat of tariffs and a higher-than-expected increase in the Fed’s most closely watched inflation metric.
The latest data from the Bureau of Economic Analysis showed that the Personal Consumption Expenditures (PCE) price index remained at a 2.5% year-over-year pace in February. Yet, the more telling core PCE measure, which strips out food and energy and is the Federal Reserve’s preferred inflation gauge, rose from an upwardly revised 2.7% in January to 2.8%, outpacing expectations.
The uptick in core inflation dealt a blow to investor hopes for near-term interest rate cuts, reinforcing the view that the Fed is in no rush to ease policy amid persistent price pressures.
Adding to the jitters, earlier this week, Trump’s announcement of a 25% tariff on all foreign auto imports stirred fears of retaliatory trade measures and higher consumer prices.
Investors …Full story available on Benzinga.com

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