Markets trim bets reduce interest rates after hot inflation report

Reading the hotter inflation is expected at the beginning of 2025 makes it likely to maintain the federal reserves in the foreseeable future, which enhances the reinforcement Warning From the President of the Federal Reserve, Jerome Powell and other central policy makers.

after Latest data From the work statistics office it showed that the Consumer Prices Index (CPI) rose more than expected in January, traders reduced their expectations for price discounts in 2025 to only 1 – and not until later in the year.

“It really pushes the schedule to the second half of the year if things go well,” Claudia Siham, the chief economist in New Coni Consheses, and an economist at the Federal Reserve, told Yahoo Finance.

On the basis of “basic”, which comes out the most volatile costs of food and gas, prices in January increased by 0.4 % than the previous month – higher than monthly profit by 0.2 % in December and the largest monthly rise since April 2023.

The price of the basic consumer price index also increased by 3.3 % from last year, as it occupied an increase of 3.2 % seen in December, which was the first time since July that year throughout the year, showing a slowdown in price growth.

Federal reserve officials were already expecting a cautious position in 2025 before reading today.

In December, they expected discounts in 2025, as they reduced the previous four, due to the uncertainty and concern for the impact of economic policies from the new Trump administration.

Powell has strengthened this opinion on his appearance in front of legislators in the Senate on Tuesday, saying that the federal reserve can maintain continuous prices for a longer period if the economy remains strong and inflation does not continue to move sustainable towards a target of 2 percent.

“Through our political position now, much less restricted than it was, and the economy remains strong, we do not need to be in a hurry to control our position on politics,” said Powell.

But reading high inflation may increase the pressure on Powell, as it moves in the commercial policies from the Trump administration, which some economists expect to pushing the inflation political calls to low rates from both sides of the corridor.

President Donald Trump In a post on social media Wednesday He called for low prices, although he did not specify whether he was talking about short -term short prices or long -term borrowing costs.

“Interest rates must be reduced, which is going alongside with the upcoming tariffs !!! Let us let the rock & roll, America !!!” to publish.

In a separate post he also said, “Biden!”

At the same time, Elizabeth Warren, a democracy, a member of the Senate Banking Committee, said Powell said on Tuesday that she wanted to see rates at the next meeting in March.

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