The Federal Reserve's Powell calls recent inflation data "bad news"

Federal Reserve Governor Guersbe said on Saturday that the inflation data released last week is bad news for the Fed, which means that the Fed must be cautious on the issue of rate cuts before inflation begins to fall. Guersbe said: "We need a clear signal to confirm that inflation is returning to the 2% policy target." He referred to last week's data showing that the Fed's favored inflation measure, the Personal Consumption Expenditures Price Index, had an annualized increase of 3.5% in March. Guersbe pointed out that even services not affected by tariffs, as well as the impact of the US intervention in the Iran conflict pushing up oil prices, are contributing to the rise in inflation levels. Guersbe said that the current inflation situation is not optimistic. He does not have voting rights on interest rate policy this year, and last December he voted against a rate cut by the Fed due to anticipated risks of rising inflation; in recent weeks, oil prices have risen, further exacerbating inflation risks.