The Federal Reserve will remain on hold, with a short interval between CPI data and the government shutdown.

According to ChainCatcher, citing Golden Ten Data, Jeff Schulze, Head of Economic and Market Strategy at ClearBridge Investments, stated that although investors will cheer the December CPI report and see it as further evidence of cooling inflation, the Federal Reserve will remain in a wait-and-see mode due to the short time interval between the data and the government shutdown event, as well as existing uncertainties. This report is positive for risk assets and increases the likelihood that the Federal Reserve will provide additional monetary policy support in 2026.