In the USA, inflation rose in January for the 4th consecutive month. Now at 3% compared to 2.9% in December and 2.4% at the low in September, the annual price increase is at its highest since June last year. The rebound in prices is broad-based, involving many different goods and services.
The rise in inflation, to a level well above the 2% target, reinforces the Federal Reserve's desire to keep the key rate at its current level, between 4.25% and 4.5%. The USA monetary authorities will be all the more cautious as the increase in customs duties decided by President Trump will increase the price of imports and stoke inflationary pressures.
Financial markets are still on the rise
The good health of the USA economy, particularly the dynamism of the labour market, which is practically in a situation of full employment, will also push the USA Federal Reserve to opt for the status quo, probably until the end of the year.
Disillusioned by the price rebound for a short time, investors quickly reassured themselves, and the USA financial markets continued to rise. It's not too late to take advantage of this. Buy USA stocks. Offering high interest rates, dollar bonds are also a must-have in any properly diversified portfolio.