Inflation Rises Unexpectedly, Keeping Fed Rate Cuts at Bay

U.S. inflation rose to 3 percent in January, prompting the Federal Reserve to consider extending a pause on interest rate cuts as the Consumer Price Index increased unexpectedly from a year earlier. Core C.P.I., which excludes food and energy prices, also rose 0.4 percent from December. Despite progress in battling high prices, uncertainties surrounding the economy under President Trump’s second term have led to a potential clash with the Fed over rate cuts, with officials emphasizing the need for substantive progress in inflation before making any policy changes.

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