The Federal Reserve may keep interest rates unchanged in Q1 as the process of inflation decline stalls.
According to ChainCatcher, citing Golden Ten Data, Matt Weller, Head of Market Research at Forex.com, stated that the overall and core CPI year-on-year growth in the US for December is expected to be 2.7%. The process of inflation returning to the 2% target has stalled for over a year, with overall CPI consistently hovering in the 2.3%-3% range and core CPI remaining in the mid-to-high range of 2.5%-2.9%. Although inflation remains above the target level, the Federal Reserve's concerns about the labor market are seen as a more pressing issue. The market expects the federal funds rate to be further lowered this year, but the implied probability of a rate cut at the March meeting is only about 25%.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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