Inflation held steady at 2.7% in April in Fed’s preferred gauge

Inflation held steady at a 2.7% annual rate in April, as measured by the gauge favored by the Federal Reserve.

The new personal consumption expenditures price index numbers reported Friday morning by the Bureau of Economic Analysis were in line with forecasts.

The lack of downward progress in headline inflation is unwelcome news for President Joe Biden and the Fed, which has been seeking more evidence that its campaign to lower inflation by raising interest rates is working. The Fed’s target is 2% inflation in the PCE index.