Scott Horsley

A report from the conference board showed the sharpest one-month drop in confidence in three and a half years. The findings echo a similar report from the University of Michigan last week. Both surveys show Americans are concerned about inflation.

A report from the conference board showed the sharpest one-month drop in confidence in three and a half years. The findings echo a similar report from the University of Michigan last week. Both surveys show Americans are concerned about inflation.

A conference board economist says that's partly driven by stubbornly high prices at the supermarket and by the prospect that President Trump's tariff policy could push the cost of living even higher. Trump has already imposed a 10% tax on imports from China, and he's threatening more tariffs on goods from other trading partners, including Mexico and Canada.

A conference board economist says that's partly driven by stubbornly high prices at the supermarket and by the prospect that President Trump's tariff policy could push the cost of living even higher. Trump has already imposed a 10% tax on imports from China, and he's threatening more tariffs on goods from other trading partners, including Mexico and Canada.

Consumers are also feeling more pessimistic about the job market.

Consumers are also feeling more pessimistic about the job market.

Fed policymakers expect inflation will continue to cool towards their 2% target. But the path could be bumpy, and President Trump's plans to impose higher taxes on imports could make it harder to bring prices under control. Business contacts in a number of Fed districts say they'll try to pass the cost of any tariffs on to consumers.

Fed policymakers expect inflation will continue to cool towards their 2% target. But the path could be bumpy, and President Trump's plans to impose higher taxes on imports could make it harder to bring prices under control. Business contacts in a number of Fed districts say they'll try to pass the cost of any tariffs on to consumers.

And a couple of Fed policymakers warned it may be hard to distinguish one-time price hikes caused by tariffs for more persistent inflationary pressures. The minutes are from the January meeting, where the central bank held interest rates steady. Fed policymakers generally want to see more progress on inflation before they order any additional interest rate cuts.

And a couple of Fed policymakers warned it may be hard to distinguish one-time price hikes caused by tariffs for more persistent inflationary pressures. The minutes are from the January meeting, where the central bank held interest rates steady. Fed policymakers generally want to see more progress on inflation before they order any additional interest rate cuts.

Scott Horsley, NPR News, Washington.

Scott Horsley, NPR News, Washington.

Forecasters had expected to see some moderation in price hikes last month, but inflation remains stubbornly high. Consumer prices in January were up 3 percent from a year ago. Prices rose by half a percent between December and January alone. Egg prices jumped more than 15 percent last month after avian flu forced egg farmers to cull millions of laying hens in December.

Forecasters had expected to see some moderation in price hikes last month, but inflation remains stubbornly high. Consumer prices in January were up 3 percent from a year ago. Prices rose by half a percent between December and January alone. Egg prices jumped more than 15 percent last month after avian flu forced egg farmers to cull millions of laying hens in December.

Overall, grocery prices were up by half a percent. Stripping out food and energy prices, which bounce around a lot, core inflation was also higher than forecasters had expected. Given the sticky price hikes, the Federal Reserve is expected to take its time before making any additional cuts to interest rates. Scott Horsley, NPR News, Washington.

Overall, grocery prices were up by half a percent. Stripping out food and energy prices, which bounce around a lot, core inflation was also higher than forecasters had expected. Given the sticky price hikes, the Federal Reserve is expected to take its time before making any additional cuts to interest rates. Scott Horsley, NPR News, Washington.

The European Union says the president's new 25% taxes on imported steel and aluminum will not go unanswered. EU leader Ursula von der Leyen says the trading bloc will push back with tariffs of its own on U.S. exports in order to protect European workers, businesses and consumers. The trade battle is a rerun of the one fought the last time Trump imposed tariffs on steel and aluminum imports.

The European Union says the president's new 25% taxes on imported steel and aluminum will not go unanswered. EU leader Ursula von der Leyen says the trading bloc will push back with tariffs of its own on U.S. exports in order to protect European workers, businesses and consumers. The trade battle is a rerun of the one fought the last time Trump imposed tariffs on steel and aluminum imports.

Economists say those measures wound up costing U.S. manufacturing jobs. Federal Reserve Chairman Jerome Powell is testifying before a Senate committee today. Powell has signaled the central bank is in no hurry to make further cuts to interest rates. Inflation remains somewhat higher than the Fed would like, while the unemployment rate is still very low. Scott Horsley, NPR News, Washington.

Economists say those measures wound up costing U.S. manufacturing jobs. Federal Reserve Chairman Jerome Powell is testifying before a Senate committee today. Powell has signaled the central bank is in no hurry to make further cuts to interest rates. Inflation remains somewhat higher than the Fed would like, while the unemployment rate is still very low. Scott Horsley, NPR News, Washington.