The Federal Reserve may keep interest rates unchanged in Q1 as the process of inflation decline stagnates

According to Jinshi News, Matt Weller, the market research director at the financial website Forex.com, stated that the overall and core CPI in the U.S. for December is expected to increase by 2.7% year-on-year. The process of inflation returning to the 2% target has stagnated for over a year, with the overall CPI consistently hovering in the 2.3%-3% range and the core CPI maintaining a mid-to-high range of 2.5%-2.9%. Despite inflation being above the target level, concerns about the job market are seen as a more pressing issue by the Federal Reserve. The market expects the federal funds rate to be further lowered this year, but the implied probability of a rate cut in the March meeting is only about 25%.