Consumer prices rose 2.6% in December from a year earlier, up from 2.4% in November, with core prices increasing 2.8%. The Federal Reserve paused interest rate cuts due to inflation hovering above their 2% target for the past six months. In December, core prices rose 0.2% from the previous month, aligning with the Fed's annual target. The Commerce Department's report also showed a 0.7% increase in consumer spending in December, driven by wage gains and higher stock prices. Powell indicated that the Fed is likely to maintain its key rate at around 4.3% to help bring inflation down further.
Source: https://apnews.com/article/inflation-economy-federal-reserve-4619a1d5d70a90b6a870535906d36028