The US stock market seems to be weathering an inflation scare, despite a 0.5% increase in the consumer-price index reported by the Bureau of Labor Statistics for January. This rise was the largest since July 2023 and may lead to the Federal Open Market Committee keeping short-term interest rates steady. The federal-funds target range is currently between 4.25% and 4.50%, a decrease of 100 basis points from its previous level in September. This suggests that the Fed may maintain its policy stance, which could help support the stock market.
For investors concerned about inflation’s impact on their portfolios, this news offers some relief. However, it’s essential to consider other factors, such as the timing of Social Security benefits and municipal bond ETFs, when making investment decisions.
Source: https://www.marketwatch.com/story/why-the-u-s-stock-market-may-continue-to-hold-up-even-as-inflation-rises-again-efa7a330