Economists warn that the Federal Reserve may face difficulties in reducing interest rates this year due to rising inflation pressures. The U.S. March Consumer Price Index (CPI) is anticipated to increase by 1% month-over-month, marking the largest rise since 2022, driven by a $1 per gallon surge in gasoline prices following the conflict in Iran. Core CPI is expected to rise by 0.3% month-over-month. Additionally, the core Personal Consumption Expenditures (PCE) price index, the Fed's preferred inflation measure, is projected to have increased by 0.4% for the third consecutive month in February. This suggests that inflation was already stalling at higher levels before the recent geopolitical tensions. Combined with a stabilizing U.S. labor market, these factors indicate that the Fed may struggle to implement rate cuts this year.