Yahoo Finance Chartbook: 6 charts show inflation is easing as spending holds up — but risks remain
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Inflation remains a top story on Wall Street as investors await interest rate cuts from the Federal Reserve. The next inflation reading, the January Consumer Price Index (CPI), will come out on Tuesday. Six charts show how inflation has declined faster than predicted while consumer spending has been strong, putting the Fed's goal of a 'soft landing' within reach. However, it's unclear whether inflation has come down for good. Wall Street strategists believe that the Fed needs to see sustained inflation at 2% before lowering interest rates. They expect the decline in inflation to be led by slower inflation in services, including housing. The Fed won't wait for core PCE inflation to hit 2% before lowering rates. Some strategists warn that another wave of inflation could occur in late spring/summer 2024.
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