Reuters says “The Federal Reserve has a 2-per-cent inflation target and tracks an inflation measure which is currently at 1.8 per cent.” This is misleading given the context, since previously the discussion has centred on the March update for the US CPI; the US personal consumption expenditure price index (PCEPI), which the US Fed targets, is still only available up to February. Its February annual inflation rate was 2.1%, up from 1.9% in January. So it is running slightly above target. The statistic Reuters refers to would seem to be the PCEPILFE, i.e. the PCEPI excluding food and energy, which had an inflation rate of 1.8% in February, the same as in January. However, the US Fed targets the PCEPI, not the PCEPILFE.