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Hotter-Than-Expected Inflation Clouds Rate-Cut Outlook.
- Source :
-
Wall Street Journal (Online) . 2/14/2024, pN.PAG-N.PAG. 1p. - Publication Year :
- 2024
-
Abstract
- Consumer prices rose 3.1% in January, higher than expected, which has complicated the Federal Reserve's plans for rate cuts. While inflation eased compared to December, it still exceeded economists' predictions. This has led to a decline in stock prices and an increase in bond yields. The release of the inflation report has raised concerns about the path to achieving the Fed's 2% target and has led investors to believe that rate cuts may be delayed until June. Fed officials have emphasized the need for more evidence that inflation is returning to their target before considering rate cuts. Core prices, excluding food and energy, were up 3.9% in January, and overall prices were higher than expected. The Fed's preferred measure of inflation has been running cooler than the Labor Department's measure, and some officials are looking for evidence that price pressures are broadening beyond goods. Prices for groceries and other frequently purchased items remain high, which has affected consumer confidence. Economists expect inflation to cool this year, but caution that the process may be uneven. [Extracted from the article]
Details
- Language :
- English
- ISSN :
- 25749579
- Database :
- Academic Search Index
- Journal :
- Wall Street Journal (Online)
- Publication Type :
- News
- Accession number :
- 175415095