The inflation pace picked up in the last month of Joe Biden's president's position has ended the worst burst of consumer prices that rises in 40 years.
The personal consumption expenditure price index increased by 0.3 % in December, accelerating from the 0.1 % increase in November. During 2024, the index, which is a measure of inflation preferred by the Fed, is 2.6 %, and has fully investigated 2 % of the Fed's goals.
After excluding volatile foods and energy prices, “core inflation increased by 2.8 % last year. This includes an increase of 0.2 % in December. In November, core inflation increased by 0.1 %.
This month, the Federal Preparatory System indicated that he wanted to see more evidence that inflation was alleviated before the reduction of interest rates was reduced again. Officials have said that Donald Trump's economic policy (tax reduction, border management, border management, tariffs, and deregualtions, etc.) would affect the economy before further policy. Investors are currently hoping that the Fed will be reduced once or twice this year.
Fed Jerome Powell chairman said to the reporters this week, “I'm waiting for the enactment of what policies have been enacted.”
The impact of tariffs may be the center of the Fed's policy decision. Most economists expect some of the tariffs imposed by the United States to be handed over to US consumers, but still remain. The Federal Governor, Chris Waller, believes that new tariffs may have a single price increase, but he does not expect them to be the source of inflation pressure.
If other countries retaliate with US tariffs and raise their own tariffs on US products -Despite the fact that US products tend to be higher than the customs duties of products imported into the United States. , It can lower the price pressure of US consumer products.
U.S. manufacturers, like other companies, have seen a surge in optimism after playing cards to the White House. Some of them are anticipated that customs duties will achieve better trade conditions. Rollbacks on tax reduction and regulations in the Biden era are also considered to be more likely to promote the production and investment of the United States.
Opinion polls show that voters have regarded inflation as one of the most important factors in elections, and that the Democratic Party was kicked out of the White House and deprived the United States of the United States. President Trump pledged to defeat inflation, indicating that encouraging more energy production would be an effective tool for achieving this goal.
