U.S. inflation unexpectedly rose in January, supporting the Federal Reserve's slow interest rate cuts
The annual inflation rate in the United States unexpectedly rose to 3% in January, economists had predicted that the inflation rate would stabilize at the level of 2.9% from December last year. This supports the Federal Reserve's rationale for slowly advancing interest rate cuts and has hit both stock markets and government bonds. The month-on-month increase in January also exceeded expectations, reaching 0.5%, higher than the expected 0.3%. After data was released, there was a significant sell-off of government bonds and stock futures. The yield on two-year US Treasury notes closely related to interest rate expectations soared to 4.37%. Futures for both S&P500 index and NASDAQ fell by more than 1%.
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