Economists Forecast Slight Dip in January Inflation but Rate Hikes May Continue Before Cuts Begin
• Economists expect Thursday's PCE data to show inflation ticked down slightly in January but remains elevated at 2.8% year-over-year
• Hotter inflation readings have caused some Fed officials to describe the path down to 2% as "bumpy"
• Several Fed officials cited recent data as evidence more rate hikes may be needed before cuts can begin
• Kansas City Fed President said service inflation remains high amid tight labor market
• Deutsche Bank expects first rate cut to occur at June meeting, not before