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A Muddled Picture, But The Fed is on Hold

Dan North | February 2025
The January consumer price index (CPI) came in hotter than expected and may well have slammed the door on the Federal Reserve’s rate-cutting for 2025. The headline CPI rose 0.5% month over month, much higher than expectations of 0.3%. That increase in turn drove the year-over-year rate to 3.0%, which is higher than expectations of 2.9%, and is definitively going the wrong way, climbing from 2.4% last September.

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