January CPI Preview: Numbers to Test Fed’s Rate-Cut Path Amid Tariff Uncertainty

From Investing.com: 2025-02-12 05:03:00

The U.S. January CPI report is set to be released on Wednesday, with headline inflation expected to rise 2.9% and core CPI to increase 3.1%. Investors are advised to hedge their portfolios against inflationary and deflationary shocks. The data could impact the Federal Reserve’s rate-cut timeline and equity markets, especially amid uncertainty over proposed tariffs. A hotter-than-expected CPI could delay rate cuts, while moderate inflation could boost hopes for cuts as early as June. Market implications include potential sell-offs in tech stocks with high valuations and a rally in safe-haven assets. The outcome will shape future Fed policy and market sentiment.



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