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The monthly report from the US Bureau of Labor Statistics revealed that the change in the February consumer price index was lower in February than in January, fueling bets that the Federal Reserve will be less aggressive in raising prices. interest rates.
Inflation in the United States accumulated eight consecutive months of deceleration in February and reached its lowest level since September 2021, sending mixed signals to the market about what the Federal Reserve could do at its next meeting on March 22.
According to official figures, the rise in prices in the second month of the year was 6% year-on-year, four tenths less than a month ago. However, the monthly variation, that is, from February to January, rose four tenths, driven by the increase in housing prices.
The US president, Joe Biden, welcomed the slowdown in inflation, although he warned that the path to stability will not be without “setbacks”.
This new data brings some confusion to the market, which is now leaning because the Fed will raise its reference rate by a quarter of a percentage point and not by half a point, as was expected just a few days ago.
The Central Bank is facing great scrutiny for its measures to curb inflation, especially now after the Silicon Valley Bank debacle and fears of a possible banking crisis that would generate a sustained rise in interest rates, the main reason for his bankruptcy.
And, while concerns about a long-lasting banking crisis eased on Tuesday – as reflected by Wall Street, which is operating with good profits – the eye will now be on what will carry more weight for the Fed: continue to lower inflation or avoid new bank failures.
With the most recent rate hike of 25 basis points, less than previous hikes, rates ranged from 4.5% to 4.75%, the highest since September 2007.
With Reuters and EFE
