The Federal Reserve’s pause on further interest rate cuts may be coming to an end. Data on US jobs and inflation suggests that progress in taming price pressures has stalled. While underlying inflation is seen cooling slightly, the core Consumer Price Index (CPI) still shows a 3.3% year-over-year increase, matching recent readings. This will likely keep the UK and other markets watching, as inflation remains a key focus alongside China and Germany’s GDP reports due later this week.
Source: https://www.bloomberg.com/news/articles/2025-01-11/us-inflation-is-set-to-back-fed-pause-after-robust-jobs-data