Fed's Next Move: Will Prices Change Their Game Plan?

Everyone's holding their breath for today's release of the new report on U.S. prices (the PCE Price Index). Economists think it will show that prices are increasing a little more slowly than before. They expect a main price measure to be up 0.3% from last month and 2.6% from last year, a little lower than in December. They are generally positive, though, about prices in general this year, around 2.5% higher than last year. Even though it costs them more to borrow money right now, they're still spending money because they're working and pretty happy with how much money they have in their savings accounts.

The Federal Reserve (the Fed) is very closely watching this report since it tells them whether or not to do something with interest rates. If the report is precisely what everyone is expecting, the Fed will not move interest rates at the moment. But if the report is not what people are anticipating, the Fed might make a move