CPI Holds Steady at 2.9%, Federal Reserve May Pause Rate Increases

Reported about 7 hours ago

The U.S. Bureau of Labor Statistics reported that the Consumer Price Index (CPI) for December remained at 2.9% year-over-year, with core CPI at 3.2%, which was lower than expected. Bank of America economist Aditya Bhave suggested that this data may lead the Federal Reserve to pause interest rate hikes, as it reduces the likelihood of aggressive inflationary pressures. He expressed comfort with inflation stabilizing around 2.5%, emphasizing that any interest rate cuts are unlikely unless inflation decreases significantly.

Source: YAHOO

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