Prices show slight signs of downward momentum earlier this year as traders await important US inflation readings later today. Healthy employment growth also supports the economy and supports the Fed to maintain a line on interest rates for now.
The Bureau of Labor Statistics is scheduled for Wednesday, just before the second half of the two-day testimony marathon, with the consumer price index, excluding food and energy, rising 0.3% in January in the last six months. is predicted to indicate.
“Coupled with a strong job market, the recent inflation print allows for patience from the Federal Reserve, who are likely to hold policies within a target range of 4.25%-4.50% in March,” says Vanguard’s Josh Hirt He said.
Money Market continued to set prices completely by the central bank this year with a fee cut of just a quarter point. In December, two 2025 cuts were priced. Strong January Job Report The Friday released will encourage a reassessment of policy outlook, and the same can be done with the January inflation data released on Wednesday.
“It’s no surprise that traders are pushing out another interest rate cut from the Fed mid-year, as the labor market remains strong and slightly surpasses the Fed’s target.” .
