The Latest Breaking News from Michael Pugliese

The US Federal Reserve is widely expected to keep its key lending rate unchanged again on Wednesday, as policymakers continue discussions over when to start rate cuts and launch the next phase in their long-running battle against inflation.

Consumer prices in February were 6% higher than a year ago, as inflation continues to ease. The data comes just days after the collapse of two regional lenders is roiling the banking system.

President Joe Biden’s plan to forgive a portion of student loans held by tens of millions of people will ripple through the economy as personal spending and savings shift, but no factor will be more closely watched than inflation.

States’ efforts to provide inflation relief to US consumers with tax rebates may go over well with recipients — yet they risk adding even more fuel to spending and making it tougher for Federal Reserve policy makers to cool inflation.