Fed may delay rate cuts due to higher inflation concerns; stocks expected to see modest gains.

From Investing.com: 2025-01-16 07:12:00

In December, the Consumer Price Index (CPI) increased by 2.9% annually, slightly higher than expected, with core inflation rising by 0.2% to 3.3%. Energy and food prices surged, while airfares also saw a significant increase. Meanwhile, medical care prices softened and prescription drug costs remained unchanged. Manufacturers in the New York region reported a sharp uptick in prices paid in January. Federal Reserve Chair Jerome Powell remains concerned about inflation and may keep interest rates higher for longer to combat rising costs in sectors like housing and automobile insurance. Stocks are expected to see modest gains in 2025, but downside risks include re-accelerating inflation and geopolitical threats.



Read more at Investing.com: Fed Will Likely Wait Until Summer to Cut Rates