Inflation Report Shocks Markets, Impacts Fed Interest Rate Predictions for 2025

Reported 2 days ago

A higher-than-expected inflation report for December has led to revised bets on Federal Reserve interest rate cuts in 2025, despite a slight easing in core inflation. The Consumer Price Index rose to an annual rate of 2.9%, while core inflation declined to 3.2%, creating uncertainty about the Fed's ability to lower rates soon. Although stocks rallied following the report, analysts suggest it may still take several months for the Fed to consider rate cuts, depending on further economic data.

Source: YAHOO

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