Markets experienced a boost following the release of February 2025 inflation data, which came in better than expected. The Consumer Price Index (CPI) rose 0.2% from the previous month, below the 0.3% estimate.
Headline inflation for the month rose 2.8% year-on-year, also below the 2.9% estimate. This data indicates that inflation is continuing to move closer to the Federal Reserve's 2% target.
For AI-powered lending platforms like Upstart, a more controlled inflation environment suggests potential for stable or lower interest rates. This can lead to more affordable borrowing costs for consumers and improved loan origination volumes.
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