US CPI in January exceeded expectations, risk assets will face uncertainty in the short term

Odaily Planet Daily News: Institutional analysis pointed out that the US CPI rose more than expected in January, exacerbating concerns about continued inflationary pressures and reinforcing the Fed's cautious attitude towards easing monetary policy. Policymakers have repeatedly stressed that there needs to be continued evidence that inflation has returned to the target level of 2% before considering a rate cut. The latest data shows that anti-inflation progress remains uneven, making it more difficult for the Fed to turn in the short term. With inflation rates higher than expected, the near-term outlook for risky assets remains uncertain. As traders adjust their expectations for rate cuts, the stock market faces new downward pressure. Bond yields may continue to rise as the market reflects a longer period of tight monetary policy. Unless the upcoming inflation report shows a significant cooling, the Fed is unlikely to cut interest rates soon, which will continue to increase volatility in the stock and fixed income markets. (Jinshi)