The Daily Money: Could inflation ease faster than the Fed believes?

Some top economists say inflation is poised to tumble more rapidly than Fed officials expect in the coming months. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

The Daily Money ALL THE MONEY NEWS YOU NEED TO KNOW   Monday, February 13 Happy Monday, Daily Money readers.    Let's start off with one of the biggest topics of the year: inflation. We've gotten used to seeing the Federal Reserve hike rates time and time again, but the end may be in sight. Some top economists say inflation is poised to tumble more rapidly than Fed officials expect in the coming months, which could limit further rate hikes and help avoid a downturn.  This all hinges on whether we see rent prices slide more briskly than expected and whether wage growth in service industries fails to drive up prices as much as Fed Chair Jerome Powell fears.   Inflation eased to 6.5% in December from 7.1% in November and a 40-year high of 9.1% in June, according to the Consumer Price Index. Barclays predicts the Labor Department on Tuesday will report a further drop to 6.2% in January.    IRS sets new guidelines for states After tens of millions of taxpayers in 21 states were told to hold off filing their federal income tax returns, the Internal Revenue Service has come out with new guidance. The IRS says taxpayers in 16 states do not need to report income from special state tax refunds or payments on their 2022 federal income tax returns. The IRS said payments in these states are related to "general welfare and disaster relief." The states are California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Maine, New Jersey, New Mexico, New York, Oregon, Pennsylvania and Rhode Island. Taxpayers in four other states – Georgia, Massachusetts, South Carolina and Virginia – face more complex rules. Most people won't likely see their state payments taxed at the federal level, but others will. The IRS also says taxpayers in Alaska need to look for "more nuanced" guidelines. 📰 More stories you shouldn't miss 📰 'Sweetheart swindles': Romance scams rake in up to $1B per year Honda, Toyota, Chevrolet among 131,000 recalled cars. Check latest car recalls here. Meet the brothers serving as co-captains of Celebrity Cruises' newest ship Who is Moon Girl? Marvel's smartest superhero heads to Disneyland, Disney+ Mars Wrigley fined after workers fall into chocolate tank   🍔 Today's Menu 🍔  A cheeseburger with BBQ sauce and a large Coke, paired with a Quarter Pounder with Cheese with a large Hi-C Orange Lavaburst, plus a large order of fries and an apple pie.  That's the new Cardi B & Offset meal, which will be available at McDonald's for a limited time starting on Valentine's Day (which is tomorrow – but all of you in a relationship knew that already, right? Right?).   The meal is available at participating restaurants nationwide, with prices determined by individual restaurants. About The Daily Money  Each weekday, The Daily Money delivers the best consumer news from USA TODAY. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you. Inflation could fall faster than you (and the Fed) think Inflation could slow faster than the Fed believes, reducing the need for more rate hikes and lowering recession risks. Rent growth is already easing. IRS tells 21 states how to handle last year's special payments McDonald's has a new Cardi B and Offset Meal coming Valentine's Day Adidas says unsold Yeezys could cost it more than $1 billion in sales These Ohio rubber workers were just doing their job. It killed them Too good to be true: Online love. Cash-stuffed letters. Broken hearts. Honda, Toyota, Chevy, and more among latest car recalls: Check here OSHA fines Mars Wrigley after workers fall into vat of chocolate Celebrity Cruises' newest ship has two captains, and they're brothers Meet Moon Girl, the new Marvel hero coming to Disneyland and Disney+   Problem viewing email? View in browser Unsubscribe • Manage Newsletters • Terms of Service • Privacy Policy/Your California Privacy Rights • Privacy Notice • Do Not Sell My Info/Cookie Policy • Feedback © 2023 USA TODAY, a division of Gannett Satellite Information Network, LLC. 7950 Jones Branch Drive, McLean, VA 22102