Federal Reserve megaphone: December CPI is unlikely to change the Federal Reserve's current wait-and-see attitude.

"Federal Reserve Whisperer" Nick Timiraos: The December Consumer Price Index is unlikely to change the Federal Reserve's current wait-and-see stance, as officials may want to see more evidence before cutting rates, proving that inflation is stabilizing and gradually decreasing. The Federal Reserve has cut the benchmark interest rate at its past three meetings, most recently in December, despite inflation stopping its decline last year. Officials lowered rates out of concerns over the possibility of a greater-than-expected slowdown in the labor market. To resume cutting rates, Federal Reserve officials may need to see new evidence showing that labor market conditions are deteriorating or that price pressures are weakening. The latter may require at least a few more months of inflation data to become apparent.