January data could redraw the Fed's roadmap on rates as inflation lingers

Investors await January's jobs report and CPI to gauge whether inflation continues to cool while the labor market stays resilient. Economists anticipate about 55,000 new jobs with unemployment near 4.4%, a 0.3% rise in CPI (core also ~0.3%), and a 2.5% year-over-year inflation rate, possible signs the Fed could begin easing later in 2026. The Fed just left rates unchanged amid inflation concerns, but officials warn the path is uncertain, making the January data crucial for policy and markets.