American inflation is unexpectedly increasing to 3 % in January

Stay in view of the free updates

Simply subscribe to American inflation Myft Digest – it is delivered directly to your inbox.

Inflation in the United States increased unexpectedly to 3 percent in January, strengthening the issue to move forward slowly with interest rate discounts and hitting stock and government bonds.

The number of the work statistics office on Wednesday exceeded the expectations of the economists suroptered by Reuters, who expected this Economic inflation It will be fixed at 2.9 percent in December.

The monthly increase was in January before expectations, reaching 0.5 percent compared to 0.3 percent expected.

The numbers have prompted investors to betting that the Federal Reserve will reduce interest rates only once this year. Before publishing inflation data, the futures market expected that the first reduction by September will reach a 40 percent opportunity for a second reduction by the end of the year.

“The markets are not convinced that we will see inflation later in the year, and certainly today’s data does not provide evidence of this,” said Eric Winogerad, chief economist at Alliancebernstein, who highlighted fears. The Federal Reserve will not reduce prices at all. “

After publishing the data, the return for two years jumped on US Treasury bonds, which follow the interest rate expectations and move background to the price, 0.09 Celsius to 4.37 percent.

The futures contracts that follow the S& P 500 index fell by 1 percent, while those who follow NASDAQ fell 100 percent. The dollar scale jumped against six other currencies by 0.5 percent.

Inflation data comes after the federal reserve Challenge calls From President Donald Trump to severe discounts to borrowing costs and instead, his main rate occupied 4.25 percent to 4.5 percent.

On Tuesday, Jay Powell, the head of the Federal Reserve, told Congress that the central bank would continue.Do our work And stay away from politics. ”

But on Wednesday, Trump renewed his demand for the social truth platform. “Interest rates should be reduced, which is going alongside with the upcoming tariffs !!!” The American President published. “Let’s solve rock & roll, America !!!”

Wednesday data will affect the fears between economists that the world’s largest economy is heating again, with Trump’s progress in plans Comprehensive definitionsCampaign to immigration and extensive tax cuts that many economists fear may lead to a new rise in inflation.

Since his return to the White House on January 20, Trump has already started carrying out mass deportations for illegal immigrants, and imposed 10 percent of definitions on Chinese imports.

It has also been announced that the major fees are on almost all imports from Canada and Mexico, as well as all imports of steel and aluminum, will be valid in March.

Powell said it is still too early to judge the impact of definitions on the economy and monetary policy, because this depends on the details of the fees.

Whitney Watson in the management of Goldman Sachs Assets said that he was along with the strong situation in the American job market, which is likely to enhance inflation numbers on Wednesday, “cautious approach to dilution.” “We believe that the Federal Reserve is likely to remain in” waiting and seeing “currently.”