Strategist: The January CPI report is good news for the Federal Reserve.

DeepFlowTech · 2026-02-13T14:35:02+00:00

January US inflation data exceeded expectations, which may help the Federal Reserve cut interest rates in the future. Although a strong labor market caused market declines, the downward trend in inflation continues, potentially providing a reason for rate cuts and helping to improve market sentiment.

DeepFlowTech

2026-02-13 14:35:02

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Deep Tide TechFlow News, February 13 — According to Jinshi Data, Federated Investors Chief Equity Strategist Phil Orlando stated that the January inflation report in the United States was better than expected, especially at the nominal level… This is good news for the Federal Reserve and also supports our long-term view that, as leadership transitions from Powell to Waller, the Fed will be able to cut interest rates three times within about a year. On Wednesday, why did the market decline despite strong labor market data? Because the market believes this is unfavorable for the Fed’s rate-cutting path — the January labor market was far stronger than expected. In this morning’s data, inflation performed better than expected, and we believe the downward trend in inflation will continue. Bonds and stocks at least jumped sharply higher, and the market expects that, from a long-term perspective, this provides a reasonable reason for the Fed to cut rates — a positive sign.

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