Fed Decision on Hold Until Inflation Numbers Revealed Today
The Federal Reserve's meeting next week to discuss interest rates is on hold until a crucial piece of information is released: the Consumer Price Index (CPI) for February. This data, coming out today, March 12th, 2024 at 8:30 AM Eastern Time from the Bureau of Labor Statistics, will heavily influence the Fed's decision.
January's inflation report surprised everyone. Instead of the expected 2.9% annual increase, inflation held steady at 3.1%. Core inflation, which excludes volatile food and energy prices, also defied predictions by remaining at 3.9% instead of dipping to 3.7%.
The Fed needs to see if February's CPI report shows inflation cooling down or continuing its surprising strength. This will determine whether they keep interest rates the same or begin lowering them to stimulate the economy.