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US inflation ticks up again — dimming prospects for significant Fed cuts this year

1. US CPI rose 0.4% in December, above economist forecasts. 2. Core CPI improved slightly to 3.2%, helping bolster market sentiment. 3. Energy costs drove overall CPI increases, with gasoline surging 4.4%. 4. Fewer expected rate cuts support the Fed's inflation outlook. 5. Tax cuts promised by Trump administration may stimulate economic growth.

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FAQ

Why Bearish?

Persistent inflation pressures could hinder stock price growth; similar to the 2022 economic climate.

How important is it?

Inflation figures directly influence Fed policy, impacting investor sentiment and S&P 500 performance.

Why Short Term?

Immediate market reactions likely due to inflation data, but long-term effects depend on monetary policy shifts.

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