💥BREAKING: US Inflation Drops to 2.8% - What This Means for the Market & Fed's Next Move‼️
US inflation has dropped to 2.8%, which is lower than expected. This decrease could significantly impact the market, especially with the Federal Reserve's meeting on March 19. Here's what you need to know:
🔸️Inflation Rate: The Core Personal Consumption Expenditures (PCE) Price Index, which excludes volatile food and energy prices, rose 2.8% on a yearly basis, in line with market expectations.
🔹️Personal Income and Spending: Personal Income grew 1% in January, while Personal Spending rose 0.2%.
🔸️Market Impact: The inflation data has not significantly impacted the US Dollar's performance, with the USD Index virtually unchanged at 103.90.
🔹️Fed Meeting: Investors are focused on the Fed's meeting, where they will decide on interest rates. Markets expect no change in the Fed policy rate in March and an 85% probability of another hold in May.
Overall, the decrease in US inflation is a positive sign for the economy, but investors remain cautious, awaiting the Fed's decision.