Inflation rate leaps to nearly 3-year high due to Iran war. Now the Fed's hands are tied.

A key Federal Reserve inflation gauge posted its biggest monthly increase in March in almost three years, signaling renewed price pressure. The reading presents another hurdle for the U.S. economy and reinforces a more hawkish policy backdrop, with implications for interest-rate expectations and bond yields.

Analysis

A key Federal Reserve inflation gauge posted its biggest monthly increase in March in almost three years, signaling renewed price pressure. The reading presents another hurdle for the U.S. economy and reinforces a more hawkish policy backdrop, with implications for interest-rate expectations and bond yields.