The Fed’s preferred inflation gauge jumps 2.7% in March, diminishing hopes for interest rate cuts

The Fed is unlikely to cut interest rates.

A measure of inflation closely tracked by the Federal Reserve remained uncomfortably high in March, likely reinforcing the Fed’s reluctance to cut interest rates anytime soon and underscoring a burden for President Joe Biden’s reelection bid.

Friday’s report from the government showed that prices rose 0.3% from February to March, the same as in the previous month. It was the third straight month that the index has run at a pace faster than...