January 2026 US CPI data came in at 2.4% vs expected 2.5%, the lowest since May 2025.
Cooler-than-expected headline inflation eases pressure on the Federal Reserve, raising the odds of rate cuts later in 2026 to support growth amid slowing consumer spending. Markets now see a 30% probability of a Fed rate cut by April and more than an 80% chance of easing by June. Initial market reaction shows gains in stocks and cryptocurrencies, with traders expressing optimism and positioning for risk assets.
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January 2026 US CPI data came in at 2.4% vs expected 2.5%, the lowest since May 2025.
Cooler-than-expected headline inflation eases pressure on the Federal Reserve, raising the odds of rate cuts later in 2026 to support growth amid slowing consumer spending.
Markets now see a 30% probability of a Fed rate cut by April and more than an 80% chance of easing by June.
Initial market reaction shows gains in stocks and cryptocurrencies, with traders expressing optimism and positioning for risk assets.