Guy Lebas, a fixed -in -law head of Janney Montgomery Scott, said the figure ofL IPC is on the “warm tempered” side and commented that the data is not cooperating with the Fed expectations.
In the swap market linked to the monetary policy of the Federal Reserve, the operators already anticipated only 25 basic points of flexibility. Before the publication of the data, This year’s first rate cut was expected to be in September.
The two -year bond yields, the most sensitive to the policy of the Central Bankup to 10 basic points increased, reaching 4.38%. The 10 -year rate briefly rose to 10 basic points, reaching 4.64%.
This report arrives at a key moment for both the Federal Reserve officials and for the US government debt market. On Tuesday, the president of the Fed, Jerome Powell, told Congress that there is no trouble to reduce rates due to the strength of the economy.
An inflation fact that surprised Wall Street
The Office of Labor Statistics of USA (Us Bureau of Labor Statistics) announced the report of the January Consumer Price Index (CPI) and revealed that Inflation increased more than expected in the first month of the year, while underlying prices reversed Last month decelerationkeeping the focus on the future of the Federal Reserve policy.
The most recent figures of the Office of Labor Statistics revealed that the Consumer Price Index (CPI) rose 3% year -on -year in January, an increase with respect to the 2.9% registered in December.
Seasonal factors, such as rising fuel costs and the persistence of inflation in food, contributed to keeping general indices. The CPI advanced 0.5% compared to the previous month, An acceleration compared to the 0.4% increase recorded in December and above the estimate of economists, who projected 0.3%.
In “underlying” terms, which exclude the most volatile costs of food and energy, prices in January increased a monthly 0.4%, above December 0.2%, and 3.3% year -on -year. This represented an increase with respect to 3.2% of December, which had been the first annual slowdown of the underlying CPI since July.
While inflation shows a downward trend, it remains above the objective of 2% of the Federal Reserve.
Source: Ambito
