Two firm inflation prints just made the Fed's 2025 rate cut path a lot 'murkier'
Published On Nov 14, 2024, 11:01 AM
Recent inflation data shows increasing prices, with the core Consumer Price Index (CPI) and the core Producer Price Index (PPI) both reporting gains above expectations. This persistent inflation complicates the Federal Reserve's plans to adjust interest rates in 2025, casting doubt on the scale and pace of potential rate cuts. Economists anticipate a slower easing of rates than previously projected, and market expectations have shifted significantly, now considering the possibility of fewer rate cuts due to the resilience of economic growth.
Stock Forecasts
SPY
Negative
Given the uncertainty around the pace of rate cuts by the Federal Reserve and the potential for persistent inflationary pressures, financial markets are adjusting cautiously. This could lead to increased volatility in equity prices, especially in interest-sensitive sectors.
Related News
Stock market today: Dow, S&P 500, Nasdaq waver with Powell speech, Trump-led sweep in focus
Nov 14, 2024, 9:30 AM
Comments from Jerome Powell could set the tone for rate cuts as the market assesses the impact of a Republican sweep in DC.
What a Matt Gaetz Justice Department Would Mean for Business
Nov 14, 2024, 7:37 AM
The Trump loyalist supports an “aggressive” antitrust approach and has called for breaking up Big Tech. But can the controversial nominee win Senate approval?
Stock market today: Dow futures tick higher with Powell speech, Trump-led sweep in focus
Nov 14, 2024, 7:29 AM
Comments from Jerome Powell could set the tone for rate cuts as the market assesses the impact of a Republican sweep in DC.