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Inflation ran hotter than expected in January, complicating the Fed’s rate decision
Inflation ran hotter in January than had been forecast by economists, signaling that higher prices remain sticky and complicating the Federal Reserve’s decision about when to begin cutting its benchmark rate. As with inflation last month, higher housing and food prices were the big drivers.
Consumer prices rose 3.1% in January from a year earlier, the government said on Tuesday. Economists had expected January prices to rise at a 2.9% pace from a year ago, according to FactSet.
Even so, the pace reflected an improvement from December, when inflation rose at an annual rate of 3.4%.
The January inflation data will help inform the Fed’s rate decision at its March meeting, with Fed Chairman Jerome Powell telling CBS News’ “60 Minutes” earlier this month that the central bank wants to see more proof that inflation is cooling before cutting rates.
“While January inflation is notoriously volatile, we should continue to see signs of declining inflation, especially on the Fed’s preferred year-over-year comparisons,” said Skanda Amarnath, executive director of Employ America and a former Fed economist.
Fewer than 1 in 5 economists project the Fed will cut rates in March, with the majority penciling in the first cut at its May meeting, according to FactSet.
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Firefighters battling brush fire in Brooklyn’s Prospect Park
NEW YORK — Firefighters are working to knock down a brush fire Brooklyn’s Prospect Park.
The fire was reported just before 7 p.m. Friday. By 8 p.m., the FDNY said it had grown to two alarms.
About 60 fire and EMS personnel responded and are working to bring it under control, and the FDNY says they are using drone technology to identify hot spots, along with specialized brush fire units.
New York City emergency officials say to expect smoke and traffic delays in the area. Residents who live nearby are urged to close their windows.
So far, there are no reported injuries.
It is unclear how the fire started.
New York City under drought watch
New York City is under a drought watch, along with other parts of the state, due to the weeks-long dry stretch across the region. Less than 2 inches of rain has fallen in Central Park since September, and October was the driest month ever recorded in the city.
A Red Flag Warning was also issued for the area Friday, meaning the danger for fire is very high because of a combination of high winds and parched earth. The warning has been extended through 6 p.m. Saturday.
Firefighters in New Jersey have been battling a string of wildfires in recent days, including one that started early Friday morning in the Palisades. That fire sent clouds of smoke across the Hudson River into parts of Upper Manhattan and the Bronx.
Watch CBS News New York at 11 p.m. for the latest on this developing story.
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Southern California residents react to wildfire that destroyed their homes
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8 decades after her father’s mysterious death in WWII, she finally received answers
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