On Friday, the government will release its latest inflation report, which shows how much prices have changed for things we often buy. This report is especially important to the Federal Reserve, which uses it to make decisions about interest rates. Financial markets will be watching closely to see how inflation has changed because the Fed wants to keep inflation low and stable.
The Federal Reserve is considering holding off on interest rate cuts due to sticky inflation. Former Fed Vice Chair Richard Clarida believes that if the Fed were focusing on the higher-than-expected Consumer Price Index, they wouldn't even be discussing rate cuts. He advises the Fed to be cautious and data-dependent, as inflation may not be decreasing as quickly as anticipated.
