The core personal consumption expenditures index, which measures year-over-year changes in how much Americans actually spend on items excluding volatile energy and food prices and is the Federal Reserve’s favored inflation gauge, was 2.8% in March. That is above consensus economist forecasts of 2.7%, but is flat from February’s 2.8%.

I n March, inflation continued to exert its influence, maintaining a firm hold on the economy as indicated by the Federal Reserve’s close monitoring of the Personal Consumption Expenditures (PCE) price index.

Jared Bernstein, Chair of the Council of Economic Advisers, breaks down the recent data showing softer growth and hotter inflation, and if there should be any concerns over consumer sentiments. He states that the economy is still very strong and shares his thoughts on how he sees inflation coming down as the Federal Reserve is no longer hiking interest rates.