Citi: The Fed may soon see more progress on inflation

The Jins data on January 30th informed that the Federal Reserve deleted the mention of inflation moving towards the target in its policy statement in January, making the statement more hawkish. However, economists at Citigroup wrote that in the coming months, as the increase in prices since early 2024 exits the indicator, the 12-month personal consumption expenditure inflation rate favored by the Federal Reserve may continue to slow. They pointed out that in fact, the annualized inflation rates of core personal consumption expenditures for six months and three months are expected to fall below 2.5%. As early as the FOMC meeting in March, the FOMC may conclude that inflation is once again moving towards their target - even approaching the target.