[Strategist: January CPI Report is Good News for the Federal Reserve] Jin10 News, February 13 – Phil Orlando, Chief Equity Market Strategist at Federated Investors, stated that the U.S. January inflation report was better than expected, especially at the nominal level... This is good news for the Federal Reserve and supports our long-term view that, as leadership transitions from Powell to Waller, the Fed will be able to cut interest rates three times within about a year. Why did the market decline on Wednesday in the face of strong labor market data? Because the market believes this is unfavorable for the Fed's path to lowering interest rates—the January labor market was far stronger than expected. In this morning's data, inflation performed better than expected, and we believe the downward trend in inflation will continue. Bonds and stocks at least saw a knee-jerk rise, and the market expects that, in the long term, this provides a reasonable basis for the Fed to lower interest rates, which is good news.