Analysis: January CPI is expected to continue the cooling trend, and the Federal Reserve may remain on hold in the short term.

BlockBeats News, on February 13th, the U.S. Bureau of Labor Statistics will release the January CPI data at 21:30 Beijing time on Friday. Market expectations are that the overall CPI for January will increase by 2.5% year-over-year, lower than the previous 2.7%; core CPI is also expected to fall back to 2.5% year-over-year, with month-over-month growth possibly rising to 0.3%. If the data meets expectations, overall inflation will drop to its lowest level since May 2025, continuing the downward trend from the high point in September last year.

Analysts point out that the slowdown in housing cost increases may suppress service prices, but tariff transmission, early-year price hikes by companies, and travel-related subcategories may still support inflation. RBC predicts that core CPI could increase by 0.4% month-over-month, exceeding market expectations.

Although inflation data may further cool down, the market generally believes it will be difficult to shake the Federal Reserve’s current “wait-and-see” stance. CME tools show a higher probability that the Federal Reserve will keep interest rates unchanged at least until July. Economists note that, against the backdrop of fiscal expansion and three previous rate cuts, policymakers are more focused on the sustainability of inflation decline and employment market performance.

The current federal funds rate target range is 3.5% to 3.75%. Some institutions believe that even if inflation falls to 2.5%, it still falls within the “normal range,” but in the short term, policy paths are unlikely to change significantly based on single-month data.

View Original
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to Disclaimer.

Related Articles

Cai Chongxin: The ultimate goal of AI development is to promote widespread application, with China aiming for an application penetration rate of over 90% by 2030.

Alibaba Group Chairman Joe Tsai stated that AI's potential lies in the application layer, promoting popularization to benefit society. China plans to achieve comprehensive AI empowerment by 2030, with intelligent application penetration exceeding 90%. Alibaba will focus on innovation to seize market opportunities.

GateNews2h ago

China's AI Large Model Weekly API Calls Reach 4.69 Trillion Tokens, Surpassing US for Second Consecutive Week

As of March 15, China's AI large language models reached a weekly call volume of 4.69 trillion Tokens, surpassing the US for the second consecutive week, with all top three global rankings occupied by Chinese models. JPMorgan Chase predicts that AI inference Token consumption will grow significantly.

GateNews6h ago

Iran's Currency Collapse: Issues 10 Million Rial New Banknotes, Largest Denomination in History Worth Only $7, Banks Run Out of Cash

Iran issued new banknotes with a denomination of 10 million rials this week, but their actual purchasing power is only about $7, revealing severe inflation issues. In response to the impacts of war and sanctions, many people have faced long queues at banks to withdraw cash. Prolonged economic downturn and systemic corruption have further led to depreciation of the rial.

動區BlockTempo7h ago

Bitcoin dips back below $75,000 on the eve of the Federal Reserve decision

Bitcoin recently touched $75,000 but failed to sustain the level, pulling back to $74,000, reflecting cautious sentiment among investors ahead of the upcoming Federal Reserve interest rate decision. Geopolitical risks and elevated energy prices have driven inflation higher, affecting market expectations for rate cuts and pushing the timeline for cuts to year-end. Technical analysis shows Bitcoin remains strong but has not confirmed a decisive breakout above the $75,000 level, with limited upside potential in the near term.

区块客8h ago

Xinda Futures: Rising Energy Prices Constrain Rate Expectations, Gold Under Short-Term Pressure

Xinda Futures research indicates that gold price movements are influenced by rising energy prices and interest rate expectations. The Middle East conflict has kept crude oil at elevated levels, intensifying inflation concerns in the market and suppressing gold prices. The market expects the Federal Reserve to maintain interest rates unchanged, but Powell's assessment will impact subsequent policy decisions.

GateNews9h ago

Silver Crashes 45% in 50 Days – Brutal Drop OR Surging Soon?

The recent decline in silver prices, driven by global market volatility and changing investor sentiment, raises concerns about broader market implications. This correction may influence capital allocation across various asset classes, including digital assets.

Coinfomania03-21 13:09
Comment
0/400
No comments