{"id":2146392,"date":"2024-01-11T11:27:02","date_gmt":"2024-01-11T16:27:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-spikes-in-latest-economic-report\/"},"modified":"2024-01-11T11:31:35","modified_gmt":"2024-01-11T16:31:35","slug":"inflation-spikes-in-latest-economic-report","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-spikes-in-latest-economic-report\/","title":{"rendered":"Inflation surges in recent economic update"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">12<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Finflation-spikes-in-latest-economic-report%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2146392&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Federal \u2063Reserve\u2064 May Delay Interest Rate Cuts as Inflation Rises<\/h2>\n<p>Fresh data has revealed that inflation increased in December, potentially dampening the Federal Reserve&#8217;s eagerness to cut \u200dinterest rates as early as March. The Labor Department&#8217;s Bureau of \u200bLabor Statistics reported a 0.3 percent rise in\u200d the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/manchin-every-senator-thinks-minimum-wage-should-be-increased\/\" title=\"Manchin: Every Senator Thinks Minimum Wage Should Be Increased\">consumer price index<\/a> (CPI)\u2063 for December, following a 0.1 percent increase in November. Economists had expected a 3.2 percent rise from the previous year, but \u200cconsumer prices actually rose\u2063 by 3.4 percent.<\/p>\n<h3>Confirmation Needed for Inflation \u2064Targets<\/h3>\n<p>The Federal Reserve is cautious about reducing\u200d the policy rate until they have more \u200bcertainty \u2063that inflation is \u200dsteadily moving towards \u200dtheir 2\u200b percent goal. Currently,\u200c the policy rate stands between \u200c5.25\u200b percent \u2064and 5.5\u200b percent. However, the latest\u2062 data\u2064 fails\u200d to provide the confirmation they seek, as\u2064 shelter prices,\u2064 used car prices, air fares, and\u200c medical care services prices continue to rise.<\/p>\n<p>&#8220;The inflation dragon, while maimed, \u200bhas yet\u200d to be slain,&#8221; commented Jason Pride, chief of\u2062 investment strategy and research at Glenmede, on the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/joe-biden-rages-im-sick-of-americans-blaming-me-for-inflation-not-vladimir-putin\/\" title=\"Joe Biden Rages: 'I'm Sick' of Americans Blaming Me for Inflation, Not Vladimir Putin\">latest inflation report<\/a>.<\/p>\n<h3>Market Expectations Adjusted<\/h3>\n<p>Despite\u200d the Federal \u2062Reserve&#8217;s\u2064 cautious approach, \u2064futures contracts \u2064tied to \u200bthe\u200c Fed&#8217;s policy rate still indicate a 65 percent chance of a rate\u200b cut in March, down from\u2064 the previous 70 percent. These \u200bcontracts also predict the\u2062 policy rate falling below\u200b 4 percent by the end of the year. However, these expectations are more\u2064 aggressive than what Fed policymakers themselves\u200d projected last month, with a year-end policy rate of 4.6 percent.<\/p>\n<p> <\/p>\n<h2> What factors are causing the Federal Reserve to adopt a cautious approach to reducing the policy\u200b rate?<\/h2>\n<p><span>  The Federal \u200cReserve may postpone its plans to cut interest rates as inflation \u200blevels\u200b rise, according to recent data. The Bureau of Labor Statistics, a division of the Labor Department, reported a 0.3\u200d percent increase in the consumer price index (CPI) for December, following a 0.1 percent rise in November. Economists had originally anticipated a 3.2 percent rise compared to the previous year, but actual consumer prices rose\u2064 by 3.4 percent.<\/p>\n<p>The Federal \u2063Reserve is adopting a cautious approach to reducing the policy\u2063 rate, as it wants to ensure that inflation steadily moves towards\u2062 its 2 percent \u200ctarget. Currently, the policy\u200c rate stands between 5.25 percent and 5.5 percent. However,\u200b the latest \u2064data fails to provide the\u2064 confirmation they need, with shelter prices, used car prices, air fares, and medical care services \u200dprices continuing to rise.<\/p>\n<p>&#8220;The inflation dragon, while weakened, still poses a \u200dthreat,&#8221; commented Jason Pride,\u2063 chief of investment strategy and research at Glenmede, in \u200bresponse to the latest inflation report.<\/p>\n<p>Despite the Federal Reserve&#8217;s\u200d cautious stance, futures contracts tied to the Fed&#8217;s policy rate still indicate a\u200b 65 \u200dpercent chance of a rate cut \u2064in March, down from the previous 70 percent.\u200c These contracts also\u200b predict the policy rate falling below\u2063 4 percent by the end \u200bof the year.\u200c However, these \u200cexpectations are more aggressive than what Fed policymakers themselves projected last month, with a year-end policy rate of 4.6 percent.<\/p>\n<p>The \u2063Federal Reserve \u200bis closely monitoring inflation levels and will likely take these into account when making decisions\u200d regarding interest rates. While market \u2062expectations still \u200cindicate a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/tech-giants-lead-surge-in-global-mega-caps-as-inflation-eases\/\" title=\"Tech giants drive global mega-cap surge as inflation eases\">potential rate cut<\/a>, the\u200b Federal Reserve&#8217;s cautious approach suggests that\u200b any\u2063 decision on interest rates will be carefully considered.<\/p>\n<p>Overall, the \u200brise in inflation in December may \u2062lead to\u200b a delay in <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/chinese-banks-are-flush-with-cash-nobody-wants-to-borrow\/\" title=\"Chinese Banks Are Flush With Cash Nobody Wants to Borrow\">interest rate cuts<\/a> by the Federal Reserve. The Federal \u2064Reserve will continue to monitor inflation levels closely and ensure that they\u2064 meet their target \u2063before implementing any changes to the policy rate.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Fresh data from the Labor Department&#8217;s Bureau of Labor Statistics revealed that the consumer price index (CPI) rose 0.3 percent in December, indicating a slight increase in inflation. This may potentially impact the Federal Reserve&#8217;s plans to cut interest rates as early as March<\/p>\n","protected":false},"author":66,"featured_media":2146393,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[544],"tags":[],"class_list":["post-2146392","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-free-beacon"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2146392","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2146392"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2146392\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2146393"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2146392"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2146392"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2146392"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}