Analysts at ANZ noted that the US inflation surprised to the upside in January, with higher energy prices being a significant driver of the solid increase in headline CPI.
"Strong above-trend growth and limited spare capacity are providing greater confidence about the return on a sustained basis of core inflation to the FOMC’s 2% target.
A sizable fiscal stimulus in the pipeline is sparking concern of an overheating US economy, which could force the Fed to adopt a more aggressive stance. The March FOMC meeting will be eagerly anticipated as officials will be incorporating recent fiscal measures (Tax Cuts and Job Act and the Bipartisan Budget Act) into their forecasts."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.