The better-than-expected data sent the blue-chip Dow Jones Industrial Average surging more than 700 points, or 1.7%, as investors felt renewed confidence that the Fed will cut rates multiple times this year. In recent trading, fed-fund futures showed the chances of more than one cut rising to 46%, from 35% on Tuesday, according to CME Group data.

Inflation picked up in December, if economic forecasters are right—driven by rising food and energy costs. And the uptick will almost certainly push the Federal Reserve to rethink any plans for a rate cut in January.

Entering 2025, models from forecasting companies like Trading Economics anticipate inflation rates between 2.4% and 2.9% between the end of 2024 and the start of 2026. Unfortunately, actually predicting inflation can be difficult, as rates can be affected by a variety of factors, including political climates and supply-chain interruptions.

Economists expect the Bureau of Labor Statistics to report a gain of 155,000 jobs, a step down from the surprising 227,000 increase in November.

The Labor Department estimates the economy added 256,000 jobs in December, indicating a resilient economy and labor market. For the Federal Reserve, which was already signaling a slowdown in rate cuts,

The Consumer Price Index rose 2.9 percent from a year earlier, but a measure of underlying inflation was more encouraging.

Progress on inflation should stall this year” as fiscal, immigration and trade policies shift, caution Bank of America economists.

With the Federal Reserve touting a slower pace of easing, markets are expecting a longer pause. But Gov. Christopher Waller said the next interest rate reduction could come as soon as March because of inflation data.

The latest Consumer Price Index showed that housing inflation pressures continued to moderate in December in an encouraging sign for the Federal Reserve.

U.S. consumer prices rose in December by less than forecast, a welcome stepdown that helped arrest a deep selloff in bond markets and reinvigorate bets that the Federal Reserve will

Op-ed views and opinions expressed are solely those of the author. The Bureau of Labor Statistics just released the monthly increase in the Consumer Price Index for […]

If forecasters are correct, everyone's least favorite economic phenomenon likely continued its comeback in December.