Inflation is too stubborn! In January, the core PCE price index in the U.S. rose by 3.1% year-on-year, reaching a two-year high, while remaining unchanged at 0.4% month-on-month.
Summary: Against the backdrop of significantly reduced expectations for interest rate cuts, this data further compresses the space for the Federal Reserve to shift towards easing. The Federal Reserve is expected to maintain interest rates at next week's monetary policy meeting, and if inflationary pressures continue to heat up, it may further delay the window for resuming interest rate cuts.
Summary: Against the backdrop of significantly reduced expectations for interest rate cuts, this data further compresses the space for the Federal Reserve to shift towards easing. The Federal Reserve is expected to maintain interest rates at next week's monetary policy meeting, and if inflationary pressures continue to heat up, it may further delay the window for resuming interest rate cuts.