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

Inflation trends paired with a strong labor market could mean more cautious Fed decisions ahead. Watching Trump's tariff impact closely could be key to understanding future consumer behavior.