Agency: US CPI in January exceeded expectations, risk assets will face uncertainty in the short term

institutional analysis pointed out that the increase in US CPI in January exceeded expectations, intensifying people's concerns about the continued existence of inflationary pressures and strengthening the Federal Reserve's cautious attitude towards easing monetary policy.

Policymakers have repeatedly emphasized the need for sustained evidence that inflation has returned to the 2% target level before considering a rate cut. The latest data shows that progress against inflation remains uneven, making it more difficult for the Federal Reserve to turn in the short term. With inflation rates higher than expected, the near-term outlook for risk assets remains uncertain.

As traders adjust their expectations for rate cuts, the stock market faces new downward pressure. Bond yields may continue to rise as the market reflects a prolonged period of tight monetary policy. Unless the upcoming inflation report shows a clear cooling trend, the Federal Reserve is unlikely to cut rates soon, which will continue to increase volatility in the stock and fixed income markets.