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In January, US inflation unexpectedly increased to 3 percent, which strengthened the case of the federal reserve system slowly with a reduction in interest rates and the hit of shares and government bonds.
A picture of the consumer price index on Wednesday exceeded the expectations of economists responded to the Reuters agency who predicted it inflation would be kept stable to 2.9 %in December.
The monthly increase in January was also before expectations, at 0.5 % compared to the expected 0.3 %.
The great contributor for the rise was the increase in the price of eggs, which increased by 15.2 % and 53 % per year in a month, partly due to the impact of bird flu.
Data from the Labor Statistics Office led investors to bet that the Fed will reduce interest rates just once this year. Before publishing data, the Futures market expected that the first reduction would arrive by September, with 40 % chance for the second reduction by the end of the year.
“The markets are not convinced that we will see disinfectants later in the year, and today's data are definitely not proven,” said Eric Winograd, the chief economist of Alliancebernstein, who emphasized concerns, Fed does not reduce rates at all. “
Upon publication of the data, a two -year -old revenue on the bonds of US Treasury, which monitors the expectations of interest rates and moves indirectly by 0.06 percentage point to 4.35 %.
US stocks opened sharply lower, with the S&P 500 dropped by 1 %and lost 1.1 %technologically severe composite composite composite composite composite, while the dollar width increased by 0.3 %.
Wednesday's inflation data also showed that the basic CPI, which relieves food and energy changes, increased in January from 3.2 % in December to 3.3 %.
It came after the Fed call President Donald Trump to make steep loans and instead maintained the main rate at 4.25 % to 4.5 %.
On Tuesday, Fed Chairman Jay Powell told Congress that the central bank would continue “doing our job and stay out of politics ”.
On Wednesday, however, Trump renewed his requirements for the Social Platform of Truth. “Interest rates should be reduced, something that would go hand in hand with the upcoming tariffs !!!” The US President published. “Leave Rock and Roll, America !!!”
CPI data will support the concerns that the largest economy in the world is reopening because Trump moves forward with plans for SweepingIntervention against immigration and wide tax cuts that many economists are concerned could cause a new increase in inflation.
Since returning to the White House 20. January Trump has already begun to deport deportations of undocumented immigrants and deposited 10 percent of tariffs on Chinese imports.
He also announced that in March he would enter the effect of high fees for almost all imports from Canada and Mexico, as well as all steel and aluminum imports.
Powell said it was too early to assess the impact of tariffs on the economy and monetary policy, as this will depend on the details of fees.
Whitney Watson at Goldman Sachs Asset Management said that, together with the robust state of the US job market, Wednesday's inflation data is likely to strengthen “Careful Fed access”. She added, “We think the Fed is likely to stay in” Waiting and See “mode so far.”
