Futures markets where traders bet on the direction of interest rates also indicated little movement, with pricing tilted toward the Fed's first rate cut coming in June.Ītlanta Fed President Raphael Bostic said the recent data shows the road back to the central bank's 2% inflation goal will be "bumpy." Wall Street reacted little to the news, with stock market futures up slightly and Treasury yields slightly lower. "The key is we're not seeing the broad nature of increases that we had been more fearful of." "Overall, is meeting the expectations, and some of the worst fears in the market weren't met," said Stephen Gallagher, chief U.S. While the Fed officially uses the headline measure, policymakers tend to pay more attention to core as a better indication of where long-term trends are heading. On a year-over-year basis, food was up 1.4% while energy fell 4.9%.īoth the headline and core measures remain ahead of the Fed's goal for 2% annual inflation, even though the core reading on an annual basis was the lowest since February 2021. Within those categories, food prices accelerated 0.5%, offset by a 1.4% slide in energy. Services prices increased 0.6% on the month while goods fell 0.2% on a 12-month basis, services rose 3.9% and goods were down 0.5%. January's price rises reflected an ongoing shift to services over goods as the economy normalizes from the Covid pandemic disruptions. Spending decreased 0.1% versus the estimate for a 0.2% gain. The moves came amid an unexpected jump in personal income, which rose 1%, well above the forecast for 0.3%. The respective December numbers were 0.1% and 2.6%. Headline PCE, including the volatile food and energy categories, increased 0.3% monthly and 2.4% on a 12-month basis, also as forecast, according to the numbers released Thursday by the Commerce Department's Bureau of Economic Analysis. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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