US CPI in January exceeded expectations, risk assets will face uncertainty in the short term

Odaily reports that an institutional analysis indicates that the US CPI increase in January exceeded expectations, exacerbating concerns about persistent inflationary pressures and reinforcing the Federal Reserve's cautious stance on easing monetary policy. Policymakers have repeatedly emphasized that there needs to be sustained evidence of inflation returning to the 2% target before considering rate cuts. However, the latest data shows that progress on inflation remains uneven, making it more difficult for the Fed to pivot in the near term. Due to inflation rates exceeding expectations, the near-term outlook for risk assets remains uncertain. As traders adjust their expectations for rate cuts, the stock market faces new downward pressure. Bond yields may continue to rise as the market reflects a more prolonged period of tight monetary policy. Unless the upcoming inflation report shows a clear cooling, the Fed is unlikely to cut rates soon, which will keep volatility elevated in the stock and fixed income markets. (<金十>)