Svmuu News: Paul Donovan, Chief Economist at the UBS, noted that while the U.S. Consumer Price Index data for February predates the recent market turmoil, it remains crucial for the Federal Reserve’s policymaking. He expects the underlying inflationary pressures reflected in today’s data to be moderate and believes the Federal Reserve should respond only to broad-based price increases.Donovan emphasized that the Federal Reserve lacks the policy tools to address isolated market disruptions. He also noted that the nearly 27% rise in gasoline prices from their January lows will not be reflected in today’s data, but consumers will notice the surge in prices for some grocery items. (Jin Shi)