Inflation & Prices
US Inflation Relief Is Finally Happening, Putting Fed Pause in View
- Core CPI posted smallest monthly increase since August 2021
- Markets rally on bet of Fed pausing rate hikes early next year
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US inflation data offered the strongest evidence yet that price pressures have peaked, cheering financial markets and putting a pause from the Federal Reserve’s interest-rate hikes in view.
Stocks and bonds rallied after the report as investors boosted bets that the Fed will pause its tightening cycle early next year. So-called core inflation — which excludes food and energy — rose just 0.2% in November, the smallest monthly advance since August 2021.