PCE inflation hits 3-year high

The Federal Reserve's preferred inflation gauge rose to 3.5% in March, its highest level in three years, driven by a sharp spike in energy costs.

The data suggests that the ongoing Iran war is complicating the central bank's plans to cut interest rates this year.

While the U.S. economy grew at a 2% pace in the first quarter, slowing consumer spending and persistent price pressures remain major concerns.

Outgoing Fed Chair Jerome Powell indicated that the economic outlook remains clouded by geopolitical instability in the Middle East.