Wednesday's report provides further evidence that inflation's progress is in danger of reversing — which, combined with a robust labor market, will likely keep the Fed on hold for the foreseeable future. Policymakers are also awaiting further clarity on President Donald Trump's policies, particularly tariffs, which are already raising consumers' inflation expectations.

Wednesday's report provides further evidence that inflation's progress is in danger of reversing — which, combined with a robust labor market, will likely keep the Fed on hold for the foreseeable future. Policymakers are also awaiting further clarity on President Donald Trump's policies, particularly tariffs, which are already raising consumers' inflation expectations.

https://www.bloomberg.com/news/articles/2025-02-12/us-core-inflation-rose-0-4-in-january-topping-forecasts

It will be crucial to monitor how these tariffs impact both domestic prices and international trade relations. A careful balance is needed to avoid prolonged inflationary pressures while maintaining economic growth.