The latest news from the Federal Reserve (Fed) tells us that they’re not in a rush to change interest rates. In their meeting in January, the Fed members said they’re happy about their plans working to lower inflation. They think they’ve reached the highest point for interest rates in this cycle.


The Fed had increased interest rates eleven times between March 2022 and July 2023 to slow down the economy and handle high inflation. Now, they want to be careful and wait for more information before making any more changes to their money plans. They’ll only cut rates if they are sure inflation is moving toward their goal of 2 percent.


It’s important to note that the Fed’s favorite way of measuring inflation, called Core Personal Consumption Expenditures (PCE), went down to 2.9% in December. We’re waiting for the January report, especially after hearing that inflation was higher than expected in both Consumer and Producer Price Indexes last month.


The upcoming release of the January PCE report will be closely monitored, particularly in light of recent reports indicating higher-than-expected inflation in both the Consumer and Producer Price Indexes for the previous month.