Interest Rates

The latest Consumer Price Index report shows U.S. inflation accelerated in January, with significant increases in grocery, gasoline, and shelter costs. This unexpected uptick has influenced the Federal Reserve's stance on interest rates and raised concerns over consumer purchasing power and potential tariff impacts.

The Federal Open Market Committee decided to maintain interest rates at 4.25%-4.5% during its first 2025 meeting, citing ongoing inflation challenges despite economic growth and a stable labor market.