US Inflation Steady at 2.4%
US inflation remains steady at 2.4% reported, the lowest since March 2021 said, but still above the Fed's target noted.
The steady inflation rate could signal a slower approach to interest rate cuts by the Federal Reserve. This challenges earlier expectations of more aggressive monetary easing in the first half of the year. February's core CPI, which excludes volatile food and energy prices, rose 0.1% less than expected, indicating a cooling trend. Shelter costs continue to be a major contributor to inflation, offsetting declines in other areas. The latest figures put pressure on the Fed to carefully balance controlling inflation with supporting economic growth. Market reactions have been muted, suggesting investors are already pricing in a more cautious Fed stance.
