US CPI rose by 2.7% in December 2024, no rate cut expected in January 29.

From Investing.com: 2025-01-15 04:14:00

The Bureau of Labor Statistics reported that consumer prices rose by 2.7% in December 2024, meeting forecasts. The US is expecting between 2.80% to 2.93% YoY headline inflation, with a 3.3% YoY core inflation. US10Y yields hit a 14-month peak at 4.799%. Investors are preparing for upcoming earnings reports and evaluating the strength of the US economy. Technical analysis suggests that interest rates may drop in the medium-term, while core inflation remains above 3.2 to 3.3%. The Fed may keep rates unchanged for the next couple of meetings in 2025.

In conclusion, the market’s unpredictability is highlighted by economist John Maynard Keynes’ quote: “The market can remain irrational longer than you can remain solvent.” This emphasizes the importance of not betting against the market, even when it appears mispriced.



Read more at Investing.com: US CPI: No Rate Cut on January 29 as Per Fed Rate Probabilities