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📰 FED MAY SEE MORE INFLATION PROGRESS SOON: CITI The Fed removed a reference to inflation’s progress toward the target in its January policy statement, giving the document a hawkish tint. But the 12-month PCE inflation rate, the Fed’s preferred measure, is likely to continue easing over the next few months as speedy price increases from early 2024 drop out of the figure, economists at Citi write. Indeed, the six-month and three-month annualized core PCE inflation rates are on track to fall below 2.5%, they note. “As early as the March FOMC meeting the FOMC might conclude that inflation is once again making progress toward their objective–or even that it has nearly arrived at it,” Citi writes.

January 30, 2025
Frank

FED MAY SEE MORE INFLATION PROGRESS SOON: CITI

The Fed removed a reference to inflation’s progress toward the target in its January policy statement, giving the document a hawkish tint. But the 12-month PCE inflation rate, the Fed’s preferred measure, is likely to continue easing over the next few months as speedy price increases from early 2024 drop out of the figure, economists at Citi write. Indeed, the six-month and three-month annualized core PCE inflation rates are on track to fall below 2.5%, they note. “As early as the March FOMC meeting the FOMC might conclude that inflation is once again making progress toward their objective–or even that it has nearly arrived at it,” Citi writes.