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"Federal Reserve megaphone" warns: CPI tonight is crucial

on February 12th, according to Jinten's report, Wall Street Journal reporter Nick Timiraos, known as the "mouthpiece of the Federal Reserve," pointed out that not all monthly CPI inflation reports are equally important. In an economy facing price pressures, the impact of January CPI data is greater. Timiraos said that the inflation report to be released this week may show whether the Fed's efforts to suppress inflation have cleared a key obstacle. The beginning of the year is the time when companies consider higher food, energy, and labor costs for the year.

The Labor Department is scheduled to release January CPI data on Wednesday, and another PPI report on wholesale prices will be released on Thursday. Timiraos emphasized that this data is of great importance to the Fed. A year ago, inflation seemed to be rapidly moving towards the Fed's target, but they encountered a major obstacle in the first quarter. In addition, officials also encountered a similar inflation surprise in early 2023, when changes in seasonal adjustment factors offset the progress the Fed had made earlier.

In addition, Timiraos also stated that the second reason why tonight's inflation report is particularly important is that Trump is implementing new tariffs, including an additional 25% tariff on steel and aluminum imports, further complicating the inflation outlook for 2025.

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