Fed Mouthpiece: December CPI Unlikely to Change Federal Reserve's Wait-and-See Stance
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Nick Timiraos stated that the December Consumer Price Index (CPI) is unlikely to change the Federal Reserve's current wait-and-see stance, and officials may want to see more evidence of inflation stabilizing and gradually declining before cutting rates. The Federal Reserve has lowered its benchmark interest rate at each of the past three meetings, with the most recent cut in December, even though inflation stopped falling last year. Officials cut rates due to concerns about greater risks of a slowdown in the labor market. To resume rate cuts, the Federal Reserve may need more evidence showing further deterioration in the labor market or easing price pressures, the latter of which may require several months of inflation data to become apparent.
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