Inflation slowed sharply in March, moving closer to the Federal Reserve’s 2% target, while tariff-induced consumer spending continued to fuel the economy.

U.S. consumer spending increased solidly in March as households boosted purchases of motor vehicles to avoid higher prices and shortages due to tariffs, but that did little to change economists' views that the economy had shifted into lower gear.

M/M vs. +0.1% consensus and +0.5% in February (revised from +0.4%), according to data released by the Commerce Department's Bureau of Economic Analysis on Wednesday.