Washington, DC: Access Building, location of the Board of Governors of the Federal Reserve 8 speaking about the day about living [+]
In February, inflation was cold but due to this, the price of the total consumer’s index inflation dropped from 3 % to 2.8 percent and the basic CPI inflation decreased from 3.3 percent to 3.1 percent. Due to the ease of year -on -year inflation rates, recent tipped job reports, and negative risks to tariff and trade policy uncertainty, interest rates by the Federal Reserve are very likely through the Central. In addition, if the CPI inflation rates decrease further year by year, the expectations for cutting the feed rate may increase. On March 19, the official feed member of future interest rates will be closely viewed for market implications.
Total CPI consumers’ inflation in February decreased
The February CPI inflation report has improved the landscape for interest rates after consumer inflation has dropped. It showed a slowdown in the CPI and Corps CPI year year. For market participants and business leaders, inflation pressure is welcomed to see the decline in interest rates. The February CPI report made it easier for the heat of the hot inflation in January.
In addition to the total CPI decline in the year by year, 3 % and from 3.3 % to 3.1 % from Core CPI, from 2.8 % to 3.3 %, inflation increased a month alone. Total CPI increased by 0.2 %, and in February, the Core CPI, which did not exclude food and energy, also increased by 0.2 %. In the month of the month, these inflation pressures increased the capacity of 20 effects to reduce consumer inflation rates year -on -year, and they improved the possibility of a cut rate in feed rate through Central.
The US year -on -year CPI consumers inflation decreased by 2.8 percent in February 2025. Core CPI 8 speaking about the day about living [+]
Consumer inflation implications for feed policy
The Federal Open Market Committee’s estimates of December 2024 for the Federal Fund Rate reflects expectations to reduce only two 0.25 % rate by the end of 2025. Forecasts reduced the potential number of deductions in feed rate for 2025.
The Printage Economics were expected to ease the CPI and basic CPI inflation rates in February. However, the year -on -year inflation rate is still higher than the 2 % target of sticky and feed. Nevertheless, the report in this report is suitable for a reduction in the feed rate at a meeting on June 18 after month and year.
According to CME Fed Watch TollAfter the release of the February CPI report, the chance of cutting the march feed rate was very low.
According to the CME Fed Watch Tool, the CPI report immediately releases. Later, on March 12, the reduction of feed interest rates was 34.4 %.
According to the CME Fed Watch Tool, the CPI report immediately releases. Later, on March 12, at 8:46 am on March 12, ET was 77.1 % difficulty.
Given these possibilities, the cut rate deduction in June seems to be very likely, while interest rates from wine are unlikely. However, the feed depends on the data, and if the CPI and personal consumption costs decrease the consumer inflation rates or if the growth is more significantly weakened, the price of the markets may decrease.
Inflation’s implications and dangers for financial markets
Fed interest rates are not possible even before June. However, interest rates are likely to decline in 2025 and 2026. In the immediate period, the financial markets are likely to move forward on the fact that the February CPI report showed a decline in total and basic CPI, indicating a further decline in the rate in 2025.
Bond production and the dollar are likely to fall on the back of this report as it poses a risks to solid expectations and decreases of cuts in feed rates in the background of US jobs.
Despite significant trade risks and increasing concerns of recession, the report may help equality, bond prices and industrial commodities in the context of this report.
The next critical report with the implications of the potential feed policy will be the first release of the February 13th Producers Price Index Report and the release of the feelings of the feelings of the University of Michigan University on March 14.
Next week, analysts, economists, and investors will be closely watching the feed meeting on March 19, which will include a member of the Federal Open Market Committee for the future of US growth, unemployment, inflation and interest rates.
