Fed's Mouthpiece: December CPI Unlikely to Alter Fed's Current Wait-and-See Stance

Odaily News: "Fed's Mouthpiece" Nick Timiraos stated that the December Consumer Price Index (CPI) is unlikely to change the Federal Reserve's current wait-and-see stance, as officials likely want to see more evidence that inflation is stabilizing and gradually declining before cutting rates. The Fed has lowered benchmark rates at its last three consecutive meetings, most recently in December, despite inflation having stopped declining last year. Officials cut rates due to concerns that the labor market might face a greater-than-expected slowdown risk. To resume rate cuts, Fed officials may need to see new evidence that labor market conditions are deteriorating or that price pressures are easing. The latter may require at least several more months of inflation data to become apparent. (Jin10)