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Hotter January U.S. inflation jolts markets, dimming rate cut hopes

February 13, 2025
Source: theglobeandmail.com theglobeandmail.com
News Snapshot:
Surprisingly strong U.S. inflation in January stoked investor fears that a heating economy and looming tariffs could corner the Federal Reserve, undercutting interest rate-cut hopes and even raising the threat of a hike. U.S. consumer prices increased more than expected in January, reinforcing expectations the central bank will be in no rush to resume cutting interest rates, particularly as economic uncertainty is exacerbated by the expected inflationary impact of U.S. President Donald Trump’s tariffs on key U.S. trade partners. Fed Chair Jerome Powell said in congressional testimony this week that the Fed was prepared to keep rates unchanged until inflation...
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