The latest reading of the Federal Reserve's preferred inflation gauge showed prices rose on a monthly basis but dropped year over year, which should keep the central bank on hold at its next meeting in March.

Surveys showing a rise in consumer inflation expectations mean the central bank needs to keep its focus on ensuring price pressures are contained.

Recent surveys showing a rise in consumer inflation expectations mean the U.S. central bank needs to keep its focus on ensuring price pressures are fully contained, Kansas City Federal Reserve President Jeff Schmid said on Thursday,