A key reading on inflation showing no progress this morning, raising questions about whether the Federal Reserve could push out the timing of expected interest rate cuts this year.

The Fed's preferred inflation measure — the "core" Personal Consumption Expenditures index that excludes volatile food and energy prices — clocked in at 2.8% on a 12-month basis and was up 0.3% from a month ago. Both numbers matched estimates.

The latest reading on inflation comes as Federal Reserve Chair Jay Powell is set to speak later this morning.

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Video Transcript

JENNIFER SCHONBERGER: This is "Yahoo Finance." I'm Jennifer Schonberger. A key reading on the Federal Reserve's preferred inflation gauge showing minimal progress this morning, likely keeping a mid-year interest rate cut on the table, even as some Fed officials have raised questions about the persistence of inflation and whether that could scale back the number of rate cuts and the timing of those cuts.

The so-called core personal consumption expenditures index, which excludes those volatile food and energy prices clocked in at 2.8% for the month of February. That was in line with expectations and down a tenth of a percent from 2.9% in January.

Headline PCE also in line with expectations clocking in at 2.5% versus 2.4% in January. And month-over-month PCE was 3/10 of a percent up versus 4/10 from January.

We will hear from Federal Reserve Chair Jay Powell later this morning.