Market Wire, North America

The Federal Reserve’s preferred inflation measure accelerated in January, helping further ratify the Federal Reserve’s cautious stance on rate cuts. Data released by the Bureau of Economic Analysis this morning showed the core personal consumption expenditures index rising 0.4 percent in January from the prior month, bringing the three-month annualized pace up to 2.6 percent – still within the central bank’s target range but headed in the wrong direction. On a year over year basis, base effects saw core price growth slowing to 2.8 percent from 2.9 percent prior, closely aligning with consensus estimates.  The overall personal consumption expenditures index...

Revisions to seasonal adjustments used in the US consumer price index helped push bond yields lower and boost equity prices this morning. The annualized change in headline inflation over the last six months of 2024 was reduced by 0.2 percent, while core price growth remained unchanged. This combination should leave monetary policymakers unmoved, but will also alleviate hedging requirements among market participants who had feared a repeat of early-2023’s revisions.  All-items consumer price index, monthly % change The Canadian economy generated more jobs than anticipated in January, but wage growth slowed sharply, helping firm market expectations for an imminent pivot...