What Tuesday’s CPI Report Means For the Economy
16 minutes ago
Forecasters are expecting Tuesday’s report on inflation to get the Federal Reserve closer to the “confidence” they’ve been seeking.
The January Consumer Price Index (CPI) is expected to rise at its lowest annualized rate in nearly three years, according to a survey of economists by Dow Jones Newswires and the Wall Street Journal.
This and other inflation reports over the next few months could be key in determining how soon, and how quickly, the Fed will cut its benchmark interest rate. Fed chair Jerome Powell said he and other Fed policymakers want more “confidence” that inflation has been tamed before cutting rates.
“We think part of the confidence the Fed is looking for is in the composition of disinflation,” wrote economists at Bank of America Monday. “The market is also going to care about the…