January's U.S. Consumer Price Index (CPI) report revealed inflation running slightly hotter than anticipated, with annual inflation rising to 3% from December's 2.9%.
This unexpected increase has raised concerns among investors, particularly in the crypto sector, where sentiment has been fragile due to broader economic uncertainties and the Federal Reserve’s firm stance on monetary policy.
The latest data from the Labor Department showed a monthly inflation increase of 0.5% for January, up from 0.4% in the previous month. Market expectations had predicted a milder rise, making this figure a cause for concern.
Meanwhile, Core CPI, which strips out the more volatile food and energy prices, climbed by 0.4% for the month—doubling December’s 0.2% increase.
On an annual basis, Core CPI reached 3.3%, slightly higher than the 3.2% recorded in December and surpassing Wall Street’s 3.1% forecast.
The U.S. economy may be closer to a downturn than many realize, according to Jay Bryson, chief economist at Wells Fargo.
Morgan Stanley has issued a cautionary outlook on the U.S. dollar, predicting a major decline over the coming year as Federal Reserve rate cuts take hold.
Legendary investor Ray Dalio has issued a stark warning about the trajectory of U.S. government finances, suggesting the country is drifting toward a series of severe economic shocks unless its debt spiral is urgently addressed.
Steve Eisman, the famed investor known for forecasting the 2008 housing collapse, is sounding the alarm—not on overvalued tech stocks or interest rates, but on the escalating risk of global trade disputes.