US inflation opens door to March Fed rate cut
The US inflation, income, and spending data released on Friday were generally in line with expectations. Spending increased by 0.7%, surpassing the expected 0.5%. This suggests that the US consumer and economy are in good shape. The inflation data released alongside the spending data indicates that inflationary pressures are not increasing significantly. Oil prices remained flat after reaching a two-month high, and gold prices remained above ,000. The data supports the case for rate cuts in March, but steady prices prevent excessive optimism.
