FannieMae (03/23/15)

Inventory drawdown, unusually high snowfall in parts of the country, and the West Coast port slowdown negatively affected the economy in the first quarter, but the economy will improve in the second quarter, according to data from the Economic and Strategic Research group at Fannie Mae. Growth will improve moderately this year, rising to 2.8% from 2.4% in 2014.

Meanwhile, job growth remains solid. Despite concerns that energy job cuts, West Coast port labor disruptions, and inclement weather would weigh on February payroll growth, the February jobs report showed a pickup in net hiring to 295,000. The three-month average job gain moderated, but to a still robust 288,000. Over the past year, the economy created 3.3 million jobs, the best since 2000. February gains were broad-based, as 65.4% of the 278 industries measured by the U.S. Bureau of Labor Statistics witnessed employment growth.

Wall Street Journal (03/24/15) Josh Mitchell; Jeffrey Sparshott

The consumer-price index increased a seasonally adjusted 0.2% in February from January, according to the U.S. Department of Labor, marking the first increase since October and the biggest since June. However, underlying inflation remains weak amid tepid economic growth. Excluding the energy and food components, core prices rose 0.2%. Economists surveyed by the Wall Street Journal had forecast a 0.2% increase in overall prices and a 0.1% increase in core prices.

Over the past year, overall prices remained flat and core prices have risen 1.7%. Overall prices had weakened since last summer, primarily because of a decline in oil prices that has since eased.

Low inflation is weighing on the U.S. Federal Reserve as it contemplates raising short-term interest rates. The Fed says it will raise rates when the labor market improves further, and when inflation begins to move toward a 2.0% target. Many analysts believe the Fed will increase interest rates later this year.