Fed, inflation
Digest more
Interest rates are likely to edge lower in 2026 as the Fed weighs inflation, jobs and political pressure. See what forecasts suggest for the year ahead.
President Donald Trump said December inflation data supports his calls for Federal Reserve Chair Jerome Powell to cut interest rates after CPI showed 2.7% annual price growth.
The Federal Reserve will meet later this month to make a decision on interest rates. But the latest inflation report is likely to make the central bank cautious about additional rate cuts.
Federal Reserve Bank of Minneapolis President Neel Kashkari said Wednesday he is optimistic about the economic outlook and expects inflation to wane, but it is unclear by how much.
The Federal Reserve is less likely to make cuts this year as it grapples with a criminal probe, analysts say. That could undermine one of Trump's goals.
So-called core inflation, or CPI data that excludes volatile food and energy prices, rose by 2.6% over the past 12 months, according to the Bureau of Labor Statistics. Economists polled by FactSet had predicted a 2.7% increase for that measure.
Inflation may not subside quickly enough for Federal Reserve Chair Jerome Powell to deliver another interest-rate cut before his term ends in May, with the Bureau of Labor Statistics reporting consumer prices rose 2.
Newsable Asianet News on MSN
Fed's Miran backs Trump's deregulation push, says it will lower inflation by 50 bps through 2030
Miran stated that the Trump administration’s deregulation drive could lower inflation by as much as 50 basis points per year through 2030.
Feedback