The Federal Reserve’s preferred inflation gauge moved even higher in December, driven largely by rising energy prices as well as food. However, a closely watched measurement of underlying inflation trends indicated some progress in the fight to rein in price hikes.

The Federal Reserve's preferred inflation gauge, known as the personal consumption expenditures index, rose in December in line with economists' expectations.

An inflation gauge closely watched by the Federal Reserve rose slightly last month, the latest sign that some consumer prices remain stubbornly elevated, even as inflation is cooling in fits and starts.

Federal Reserve governor Michelle Bowman said she still expects declining inflation to allow further interest rate cuts this year, but feels rising wages, buoyant financial markets, geopolitical risks,

Fresh tariffs amid high inflation are making the Fed’s job uniquely difficult and feeding uncertainty about what to expect for interest rates this year.

U.S. prices increased in December while consumer spending surged, suggesting that the Federal Reserve could delay cutting interest rates for some time this year.

Fed kept its key interest rate on hold in a range between 4.25-4.5%, following three consecutive cuts. TD Asset Management's Scott Colbourne discusses the decision and market implications.

The latest reading on the Fed's preferred inflation gauge comes just two days after the central bank paused its interest rate cutting cycle.

Stock futures held onto earlier gains after the Federal Reserve’s preferred inflation gauge matched expectations. Dow futures were up 0.3%. S&P 500 futures were up 0.4%. Nasdaq 100 futures were up 0.7%.

As was widely expected, the U.S. Federal Reserve held interest rates at current levels following the conclusion of its latest policy meeting.

Federal Reserve policymakers voted Wednesday to hold interest rates steady in its first rate decision of the year.