Investing.com – It was issued to confirm expectations that inflation is declining, read after read, which made the majority of investors tend to expect the Fed to raise only 25 basis points at the February meeting, which was confirmed by the Wall Street Journal in a report on interest and inflation.
Data also revealed that points are expected to be raised by the US Federal Reserve during the February and March meetings.
And a member of the US Federal Reserve, Harker, spoke after the US inflation data was positive and equal to expectations, which is likely to be on the right downward path, saying that reaching inflation at the 2% level still seems far away, and that he believes that it will reach its inflation target within two years. Pointing out that the slowdown in inflation has begun to appear quietly in the real estate sector.
Harker expressed concern about the repercussions of the effects of the US budget deficit in the long term.
At the same time, the US White House said after the release of the data that the results for December show that a soft drop in inflation without breaking the economy is still possible. Adding that the data indicates that a transition to stable growth is possible.
The US markets started trading on a downward trend despite the positive data, then turned to profitability, rising by 0.34% now, adding 117 points, while it rose and settled at 10921.93 points, while it rose by 0.14%.
The American dollar declined, which fell by 0.30%, to record 102.555 against a basket of foreign currencies.
As for its futures contracts, it rose by 0.58%, to trade at $1889.65 an ounce, while spot contracts rose by 0.61%, to record $1890.00 an ounce.
consumer price index
On an annual basis, the headline consumer price index for December increased by 6.5%, just as experts expected it to decline to 6.5% after recording 7.1% last November.
On a monthly basis, the main measure of inflation declined by -0.1%, while experts expected it to remain unchanged after rising by only 0.1% in the November data.
As for the basic consumer price index (excluding food and energy), it witnessed a slowdown and rose by 5.7%, as experts expected, and on a monthly basis, it rose by only 0.3%, as experts expected.
Unemployment data recorded 205 thousand applications for unemployment benefits, which is less than what experts expected by 10 thousand, as they expected to receive 215 thousand applications for unemployment benefits, and thus the average unemployment claims decreased in 4 weeks from 214.25 thousand to 212.50 thousand.
Real income increased in December by 0.1% after recording a 0.2% increase in November.
The percentage of bets on raising the Fed increased by only 25 basis points, to 82.9%, to become only 17.1%, who believe that the Fed will maintain its pace and raise interest by 50 basis points.