High inflation may keep the Fed from lowering interest rates much further...and that could lead the economy to weaken even more next year.
Guess what, kids: Inflation isn't going away. And that means the Federal Reserve's job is getting tougher.
Oil is hovering around $100 a barrel. And the January Consumer Price Index figures - released Wednesday morning - showed inflation bubbling up.
With that in mind, some see dimming hopes for more aggressive interest rate cuts by the Federal Reserve.
The high inflation figures will "further complicate the Fed's easing campaign," said Ashraf Laidi, chief currency strategist with CMC Markets US, a New York-based brokerage firm, in a note Wednesday morning.
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