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Fed's favorite core inflation measure hits 2.6% in January, as expected

1. Inflation in January eased slightly amid tariff concerns. 2. PCE price index rose 0.3%, annual rate at 2.5%. 3. Core PCE increased 0.3% monthly with a 2.6% annual rate. 4. Inflation numbers align with Dow Jones consensus estimates. 5. Federal Reserve likely to maintain current interest rate levels.

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FAQ

Why Bullish?

The slight easing of inflation could support economic growth. Historically, similar scenarios have led to stable or rising S&P 500 prices.

How important is it?

Stability in inflation and interest rates directly affect investor sentiment and market performance of S&P 500 companies.

Why Short Term?

Immediate interest rate stability can boost market confidence. Over the near term, this sentiment could influence S&P performance positively.

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