As expected

In January, inflation decreased slightly when the worries accelerated over the president Donald TrumpTariff plans, the trade department said on Friday.

A PRICE PRICE PRICE PRICE PRICEThe overwhelming measure of inflation of the federal reserve system increased by 0.3% a month and showed 2.5% per annum.

With the exception of food and energy, the main PCE also increased by 0.3% per month and was 2.6% annually. Fed representatives are more careful about the main measure as the best indicator of long -term trends. The 12-month main measure showed a step from reducing the revised level of 2.9% in December. Capital inflation weakened at 0.1 percentage points.

All figures match the Dow Jones’s consensus assessment and most likely Jerom Powell And his colleagues, which contain, until interest rates.

The inflation report was “good but we didn’t finish,” said Jose Raz, Chief Investment CEO in America in HSBC Global Private Banking and Wealth Management. “So the prudent patient Powell, as I call him, will remain in the game and I think he will wait.”

Elsewhere, the reports, income numbers and expenses showed several surprises.

Personal profits made much more sharp growth than expected, 0.9% compared to the month of expectations by 0.4%. However, higher income did not costs that decreased by 0.2%, compared to the forecast by 0.1% of profits.

Personal savings also increased to 4.6%.

Futures on the stock market were displayed higher after the report, while the revenue of the Treasury was largely lower.

The report implies how Fed policies weigh their next step at interest rates. In recent weeks, officials mainly expressed the hopes that inflation would continue to strive below. However, they stated that they wanted more evidence that inflation is steadily returned to their 2% target before they would reduce interest rates further.

The prices for the goods increased by 0.5% per month, pushing for 0.9% of car and parts increase, as well as 2% gasoline jump. Services increased by only 0.2%and housing increased by 0.3%.

After the report, futures traders slightly raised the chances of reducing the points in June a quarter, and the market is now slightly higher than 70%, Fedwatch Group CME reports. Markets expect two reductions by the end of the year, although the chances of the third reduction have increased in recent days.

Despite the fact that the public is more closely monitored by the Consumer Price Index, issued at the beginning of the month of the Bureau of Labor Statistics, the Fed prefers PCE measures, as it is broader, is setting up on changes in consumer behavior and places a much smaller emphasis on housing costs.

IPC showed that 3% and 3.3% are at the heart of all inflation.