Inflation eased for the sixth consecutive month in December, as the Consumer Price Index (CPI) increased by 6.5% over last year and decreased 0.1% sequentially. However, the U.S. economy added 517,000 jobs in January, significantly higher than the Dow Jones estimate of 187,000.
The central bank still sees the need for ongoing increases in the target range. Moreover, Fed Chairman Jerome Powell warned that if the U.S. job market strengthens further in the upcoming months or inflation rises, the central bank might have to raise its benchmark rates higher than its projection.
