In February, US inflation rose by just 2.8% compared to the same period of 2024 and by 0.2% over one month. This marks a clear slowdown compared to the previous month's +3.0% and +0.5%.
These figures are not insignificant. The US Federal Reserve's (Fed) willingness to continue the cycle of key interest rate cuts that it began in September 2024 will depend on the path of inflation. Without tangible progress on this front, US policy rates could remain unchanged for 2025.
This decline in inflation, therefore, gives investors hope that the Fed will keep the possibility of a rate cut on the table at the next monetary policy meetings. Such a prospect should reassure investors.
Uncertainties remain with new trade policies
But, for now, the White House's dithering on the trade front is increasing uncertainty and diminishing visibility.
This inevitably weighs on the ability of companies to invest to prepare for the future.
Cheaper credit would at least make these investments expensive and could well support domestic demand, the main driver of the world's largest economy.
We remain present in the United States as part of all our diversified portfolios.
