[ad_1]
The Fed’s recommended inflation measure recorded its slowest annual rise in January since March 2021, matching Wall Street expectations, while monthly prices rose at the fastest pace in a year.
The core personal consumption expenditures (PCE) index, which excludes food and energy costs, is closely monitored by the Federal Reserve and rose 2.8% year over year in January, the lowest since a 2.2% rise in March 2021. This was an annual increase rate. .
Compared to the previous month, core PCE rose 0.4%, the highest since January 2023, and an increase from December’s 0.1% rise.
Headline PCE, which includes all categories, recorded a 2.4% year-over-year increase, slowing from last month’s 2.6%.
The print publication comes at a critical time in the inflation story after another survey on price rises, the Consumer Price Index (CPI), recently showed that prices rose faster than expected in January. . Stocks fell after the report beat expectations, prompting investors to change their expectations for a rate cut.
Markets are now pricing in three rate cuts in 2024, consistent with the Fed’s latest forecast and up from the previous consensus of six rate cuts seen in December, according to Bloomberg data. has been revised downward. Before Thursday’s report, investors had given a 58% chance that the Fed would cut interest rates for the first time in June.
The latest minutes from the Federal Reserve’s January meeting showed that most officials were concerned about the risk of “acting too quickly” in cutting interest rates. Mainly, officials have expressed in recent commentary that they want “more confidence” in the downward trajectory of inflation.
Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer.
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
[ad_2]
Source link
