While
the
inflation
rate
has
declined,
the


Federal
Reserve
is
targeting
2%
inflation
as
its
goal.
This
makes
it
unlikely
that
the
central
bank
will
cut
benchmark
rates
next
week.
And
it’s
more
bad
news
for
the

housing
market,
which
has
been
stagnant
for
years
due
in
part
to
high

mortgage
rates.

“With
inflation
where
it
is
currently,
it
is
a
near
certainty
that
the
Federal
Reserve
will
not
cut
the
federal
funds
rate
when
they
meet
next
week,”


Bright
MLS
chief
economist
Lisa
Sturtevant
said
in
a
statement.
“What
is
also
certain
is
that
it
is
getting
harder
to
predict
where
the
housing
market
might
head
this
spring.”

While
the
decline
in
the
inflation
rate
is
good
for
consumers,
the
elephant
in
the
room
is

President
Trump’s
chaotic
approach
to
trade
policy,
which
economists
believe
will
put
upward
pressure
on
inflation.

Trump’s
25%

tariff
on
Canadian

steel
and
aluminum
imports
went
into
effect
on
Wednesday.
A
bevy
of
tariffs
are
scheduled
to
begin
on
April
2
when
the
one-month
pause
on

Mexican
and

Canadian
tariffs
for
goods
not
covered
by
the
United
States-Mexico-Canada
Agreement
(USMCA)
will
expire.

Trump’s

global
reciprocal
tariffs
—
which
are
the
most
dramatic
of
his
trade
proposals
—
will
also
begin
on
April
2.

While
it’s
often
hard
to
tell
what
Trump’s
true
intentions
are,
economists
fear
that
the

uncertainty
alone
will
result
in
U.S.
homebuilders
and
other
companies
raising
prices
just
to
be
safe.

The
National
Association
of
Home
Builders
(NAHB)
said
it
has
learned
that
some
builders
are
pricing
in
a
$7,500
to
$10,000
markup
to
cover
any
tariffs
that
take
effect.

“The
modest
improvement
[in
inflation]
is
still
not
enough
to
prompt
a
March
rate
cut,
but
it
does
potentially
give
the
Fed
greater
flexibility
to
consider
more
rate
cuts
later
this
year,”


First
American
senior
economist
Sam
Williamson
said
in
a
statement.

“However,
the
impact
of
new
tariffs
likely
hasn’t
materialized
yet,
leaving
uncertainty
around
inflation
as
we
approach
spring,
supporting
the
Fed’s
cautious
approach
in
the
coming
months.”