An inflation gauge closely watched by the Federal Reserve rose slightly last month, the latest sign that some consumer prices remain stubbornly elevated, even as inflation is cooling in fits and starts.
Federal Reserve governor Michelle Bowman said she still expects declining inflation to allow further interest rate cuts this year, but feels rising wages, buoyant financial markets, geopolitical risks,
U.S. prices increased in December while consumer spending surged, suggesting that the Federal Reserve could delay cutting interest rates for some time this year.
Even as economies shift after several years of aggressive salary growth combined with talent shortages, salary increases likely will continue to outpace inflation. Why?
Fresh tariffs amid high inflation are making the Fed’s job uniquely difficult and feeding uncertainty about what to expect for interest rates this year.
The measure of price increases targeted by the Fed sped up in December, reflecting a stubborn spell of inflation that remains modestly higher than the central bank’s target.
Tax cuts, deregulation, and protectionist policies, sounds like a deal for the domestic economy. But it could upset the balance of things.
An inflation gauge closely watched by the Federal Reserve rose slightly last month, the latest sign that some consumer prices remain stubbornly elevated, even as inflation is cooling in fits and starts.
Stock futures held onto earlier gains after the Federal Reserve’s preferred inflation gauge matched expectations. Dow futures were up 0.3%. S&P 500 futures were up 0.4%. Nasdaq 100 futures were up 0.7%.
Treasury yields were up slightly Friday morning, following a U.S. inflation report that was in line with Wall Street’s expectations. The yield on the 10-year Treasury was rising about one basis point to around 4.
Joyce Chang, Chair of Global Research at JP Morgan, discusses inflation, tariffs, and Federal Reserve policy. She expects inflation to remain high in the first half of the year and notes that proposed tariffs on China,