US inflation cools to 2.4% in January 2026 as Fed officials warn rate cuts still distant

US consumer prices rose 2.4% in the 12 months through January 2026, easing from 2.7% in December and undershooting economists' expectations. While the softer reading and modest monthly gains suggest some relief on inflation, Chicago Fed President Austan Goolsbee signaled the central bank is not ready to cut interest rates until it sees more sustained progress. Traders largely expect the Federal Reserve to hold rates at its March 18, 2026, meeting, with future moves dependent on upcoming inflation and labor data.