Inflation data signals positive trend
The latest US inflation figures show CPI rising 2.4% year-on-year in January, down from December's 2.7% and getting closer to the Fed's 2% target. This trend indicates that despite widespread concerns, tariffs have had a much smaller impact on prices than anticipated.
Tariff effects prove minimal
A MetLife economist noted that current inflation remains moderate, with most goods experiencing only mild price increases. She emphasized that this supports the view that tariff impacts on overall prices in 2024 will be minimal.
Rate cut expectations growing
- Economist maintains forecast for three rate cuts this year
- Policy focus shifting from inflation control to labor market stability
- Markets closely watching future rate decisions
With inflation pressures easing, the Fed's attention is increasingly turning to employment market developments. Market expectations now point to multiple rate cuts during the year to address potential economic slowdown risks.