Investors react to consumer inflation data

The consumer price index increased 0.5% in January, and has increased 3.0% in the last 12 months, according to the Office of Labor Statistics. The economists surveyed by Dow Jones awaited a monthly increase of 0.3% and an increase of 2.9% year after year.

The central ICC, which excludes volatile food and energy prices, increased 0.4% for the month and 3.3% in 12 months. Economists had done a job in central price increases of 0.3% in January and 3.1% year after year, according to Dow Jones.

The hot inflation report could boost the expectations of the next rate of the Federal Reserve in the future. The Federal Open Market Committee chose to keep the rates unchanged last month after reducing the previous three meetings.

“It is likely that the liberation of IPC strongest than expected CIM and the cautious approach of FOMC to facilitate ease,” said Whitney Watson, coefficient of co-Cabeza and co-president of solutions for fixed income and liquidity investments within Goldman Sachs Sachs Asset Management, in a statement.

On Tuesday, the president of the Fed, Jerome Powell, appeared before the Senate Banking Committee, and said the Central Bank “does not need to be in a hurry” to further reduce interest rates.

“We know that reducing policy restriction too fast or too much could hinder progress in inflation. At the same time, reducing policy restriction too slowly or very little could improperly weaken economic activity and employment,” Powell said.

Powell will talk to the Financial Services Committee of the House of Representatives on Wednesday.

The producer’s price index will be published on Thursday.

Investors are also dealing with the potential impact of rates, such as the president of the United States, Donald Trump signed an order Monday to add a 25% duty on steel and aluminum imports.