CNBC Daily Open: All key data is in — and it’s made the Fed’s policy path more uncertain

Key points

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The latest economic data has made the Federal Reserve's policy path more uncertain.

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The consumer price index (CPI) rose 0.5% in January, higher than economists' expectations.

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The core CPI, which excludes food and energy, rose 0.4%, also higher than expected.

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The data suggests that inflation is still running too high for the Fed's comfort.

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The Fed is now expected to raise interest rates by a quarter-point at its next meeting in March.

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However, the data has raised concerns that the Fed may need to be more aggressive in raising rates.

What does this mean for investors?

The latest economic data has made the Federal Reserve's policy path more uncertain. The Fed is now expected to raise interest rates by a quarter-point at its next meeting in March. However, the data has raised concerns that the Fed may need to be more aggressive in raising rates. This could lead to higher interest rates for consumers and businesses, which could slow economic growth.

Investors should be aware of the potential risks and adjust their portfolios accordingly. They may want to consider reducing their exposure to risky assets, such as stocks, and increasing their exposure to safer assets, such as bonds. They should also be prepared for the possibility of higher interest rates in the future.

Additional resources

• CNBC: CPI January 2023
• Federal Reserve: Federal Open Market Committee