US CPI Moderates in February, Inflation Eases to 2.8% Annuly

Tariffs and Policy Uncertainty Drive Concerns Despite These Modernating Figures, Persenti Tariffs, Notable February’s 10% Increase On Chinese Imports, Continue to Pressure Inflation Expectations. Bank of America Economists Highlightned the Risk that Prolonged Elegated Inflation, Even Driven by Tempoury Factors Like Tariffs, Could Unanchor Future Expectations. Federal Reserve Chair Jerome Powell Echoed These Conceerns, Cautioning That Path To Stabilizing Inflation Remains Challenging.

Mixed energy and food prices Impact CPI Energy Prices Rose Marginally by 0.2% MONTHLY, LED by Higher Natural Gas and Electricity Costs Despite Gasoline Prices Deckling by 1.0%. Food Prices Also Edged Up 0.2%, Driven Primarily by a Sharp 10.4% SPIKE IN EGG PRICES AND A 1.6% Rise in Meats and Poultry.

Market Forecast and Fed Policy Implications February’s CPI Data Supports The View that Inflation Is Gradual Easy, Thought It Remains Above the Fed’s 2% Target, Limiting Prospects for Near-Term Rate Cuts. Continued Elegated Costs in Shelter and Select Services Mean The Fed Will Likely Remain Cautios. Traders Should Expert The Fed to Maintain It Restrictive Stance, Potentally Extending the Timeline for Rate Cuts Until Cleerr Signs of Sustainable Inflation Moderation Appear.