Strategists: If the inflation trend continues into December, the Fed will have room to cut rates in Q1.
AI Summary1 min read
TL;DR
Strategist notes December CPI was slightly better than expected, with core inflation at 2.6% vs. 2.7% forecast. If this trend holds, it could give the Fed flexibility to cut rates in Q1.
Tags
QAltYinflationFederal Reserveinterest ratesCPI reportmarket strategy
Odaily Odaily reports that Art Hogan, Chief Market Strategist at B. Riley Wealth, commented on the US CPI report: Today's CPI report brought some positive news, with December inflation performing more moderately than the market had previously expected. Overall CPI rose 2.7% year-on-year, in line with expectations; while core inflation was 2.6%, slightly lower than the market's original forecast of 2.7%. If this trend continues, it will provide the Federal Reserve with some policy flexibility to cut interest rates in the first quarter. (Golden Ten)