Kenny Fisher

The US consumer price index (CPI) climbed 2.4% year-on-year in February, unchanged from January and matching the market estimate.

Yesterday’s delayed January employment report was surprisingly strong, led by a sharp rise in non-farm payrolls (NFP). Investors had a chance to review a fresh batch of US data, and risk appetite headed higher as the US Dollar has retreated against the major currencies, while equity markets are pointing higher.

The Reserve Bank of Australia raised the cash rate by a quarter-point to 3.85% at today’s meeting.

There were no surprises from the US Federal Reserve (Fed) at Wednesday’s meeting.

Earlier this month, a US military operation captured Venezuelan leader Nicolas Maduro and transported him to New York to face trial for narco-terrorism conspiracy. This was followed by the massive protests in Iran, which were bloodily suppressed by the Iranian regime. President Trump strongly hinted at a military response against Tehran and fears of war in the Middle East increased dramatically. Trump now appears to have backed off, saying it is because Iran agreed not to execute hundreds of protestors. Oil prices, which had climbed to multi-week highs during the unrest, eased after Trump moved away from military action.

The US consumer price index (CPI) climbed 2.7% year-on-year in December, unchanged from November and matching the market estimate.

Australia’s consumer price index (CPI) eased to 3.4% year-on-year in November. This was sharply lower than the 3.8% gain in October and well below the market estimate of 3.7%.

The Federal Reserve released on Tuesday the minutes of the Federal Open Market Committee (FOMC) meeting earlier this month. At the meeting, the FOMC voted to lower rates by 25 basis points to a range of 3.5%-3.75%, its lowest level since September 2022.

In November 2025, US inflation surprised sharply to the downside while the labor market weakened, pushing the US dollar lower and US stock indices sharply higher.

The US Federal Reserve (Fed) lowered its benchmark rate by 25 basis points to a range of 3.50%-3.75% at Wednesday’s meeting.

The dominant market data in markets so far today is firm Australian economic growth and Swiss deflation.