Inflation Worsened in January—What This Means for Fed Rate Cuts

‘I would say we’re close, but not there on inflation,’ said Fed Chair Jerome Powell.

Federal Reserve Chairman Jerome Powell testifies before the Senate Committee on Banking, Housing, and Urban Affairs on Capitol Hill in Washington on Feb. 11, 2025. Madalina Vasiliu/The Epoch Times

Inflation is heading in the wrong direction, prompting financial markets to reconsider their monetary policy expectations.

“Biden inflation up!” President Donald Trump said in a Truth Social post shortly after the January consumer price index (CPI) report.