Forecasts Stable: The Fed Should Take A Breather

2025-01-17 02:00:00 ET

Summary

• The Bureau of Labor Statistics announced the Consumer Price Index rose 0.4 percent in December and 2.9 percent over the past year.
• Core inflation rose 0.2 percent in December, down from 0.3 percent in the previous four months.
• The Fed should pause its cuts, keeping monetary policy steady until we see confirmation that the spike in energy prices was an aberration, and that broader price pressures continue to moderate.

By Alexander W. Salter

Prices still pinch: The Bureau of Labor Statistics announced the Consumer Price Index (CPI) rose 0.4 percent in December and 2.9 percent over the past year. The major cause was energy prices, which rose 2.6 percent last month and accounted for "over forty percent of the monthly all items increase."...

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