- Analytics
- News and Tools
- Market News
- Fed: Interest rate cut firmly planned for May could start to wobble on inflation reacceleration – Commerzbank
Fed: Interest rate cut firmly planned for May could start to wobble on inflation reacceleration – Commerzbank
US inflation surprised to the upside in January. Economists at Commerzbank analyze the implications for a possible pivot to interest rate cuts by the Federal Reserve (Fed).
Setback in the disinflationary trend
US consumer prices rose by 0.3% in January compared to the previous month, slightly more than expected. The year-on-year rate fell from 3.4% to 3.1%. The more important core rate, which excludes energy and food, increased even 0.4% in the previous month, also slightly higher than expected. The YoY comparison remained at 3.9%.
The unexpectedly high CPI increase in January is likely to encourage the Fed to wait and see how prices develop before declaring victory over inflation.
Some observers will now be wondering whether the interest rate cut that was firmly planned for May will also start to wobble, especially as the real economy has so far proved to be very robust. We had already considered a cut in March to be premature anyway.
As far as May is concerned, we should wait and see how PCE inflation has developed in January and whether higher price pressure is also evident in February before assessing Fed policy.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
