U.S. inflation ticked higher in December, data indicated Wednesday, but core price price pressures eased, potentially sparking a relief rally in stocks tied to renewed bets on Federal Reserve interest rate cuts.
The Federal Reserve has now battled high inflation for nearly four years. Economists point to the Federal Reserve's rate cuts, rising oil prices, consumer psychology, and potential tariffs as factors holding back inflation's progress.
Entering 2025, models from forecasting companies like Trading Economics anticipate inflation rates between 2.4% and 2.9% between the end of 2024 and the start of 2026. Unfortunately, actually predicting inflation can be difficult, as rates can be affected by a variety of factors, including political climates and supply-chain interruptions.
Gas prices rose sharply, but investors homed in on a small decline in the core CPI.
The U.S. Federal Reserve will hold interest rates steady on Jan. 29 and resume cutting in March, according to a slim majority of economists polled by Reuters, as policymakers digest an expected barrage of new economic policies from Washington.
The Federal Reserve's premature victory lap over inflation reveals a worrisome misunderstanding of the predicament we still find ourselves in.
The central bank’s recent infusion of financial-market brawn includes Beth Hammack, who worked for three decades at Goldman Sachs.
The effects of potential changes in trade and immigration policy suggested” restoring 2% inflation “could take longer than previously anticipated,” according to the Fed minutes released Wednesday.
Tariffs are a wild-card for inflation this year, but it is too soon to say what any changes will mean for the Federal Reserve, said central-bank newcomer Beth Hammack. In an interview, the Cleveland F
Federal Reserve Bank of Cleveland President Beth Hammack said in an interview published in the Wall Street Journal on Friday that inflation remained a problem.
Price and wage trends point to the Fed hitting its target this year, but whether it gets there now depends on Trump.