Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Economy

Fed seen cutting policy rate by 25 bps in Nov, Dec

admin by admin
October 31, 2024
in Economy
0
Fed seen cutting policy rate by 25 bps in Nov, Dec
0
SHARES
9
VIEWS
Share on FacebookShare on Twitter

(Reuters) -Federal Reserve policymakers are very likely to go ahead with cutting short-term U.S. borrowing costs by a quarter percentage point next week, traders bet on Thursday, after economic data suggested price pressures continue to ease. 

Inflation by the Fed’s targeted measure, the year-over-year increase in the personal consumption expenditures index, was 2.1% in September, down from an upwardly revised 2.3% in August, a Commerce Department report showed. The Fed aims at 2% inflation.

A separate report from the Labor Department showed the Employment Cost Index rose 0.8% in the third quarter from the previous quarter, less than what economists had forecast and the smallest increase since the second quarter of 2021.

A rise in labor costs was among factors that had alarmed Fed policymakers back then, prompting their pivot to tighter policy.

“Policymakers at the Federal Reserve are likely to be encouraged by this data as wage growth measures at levels consistent with less inflation,” wrote Indeed Hiring Lab Economist Cory Stahle.

Futures contracts settling to the Fed’s policy rate put the chances of a 25 basis point cut next week at about 94%, and give a second 25 basis point in December about a 70% chance.

The reports – the last major economic data, along with Friday’s monthly jobs report, before the Fed’s Nov. 6-7 meeting – did not suggest the U.S. central bank’s battle with inflation is done.

Underlying price pressures, as tracked by the core PCE price index that excludes volatile food and energy, ticked up to 2.7% from a year earlier, higher than the 2.6% economists had expected and matching the prior month’s increase.

Some analysts warned that could prompt the Fed to cut the policy rate to a 4.5%-4.75% range next week, and then hold it there.

“We believe the Fed will pause any rate cuts in December amid fears about a re-acceleration of inflation,” wrote Michael Landsberg, chief investment officer at Landsberg Bennett Private Wealth Management.

This post appeared first on investing.com

Previous Post

Column-Financial conditions vs real rates – is Fed policy too tight or too loose? McGeever

Next Post

Micron falls as Samsung says it has made progress on HBM front

admin

admin

Next Post
Micron falls as Samsung says it has made progress on HBM front

Micron falls as Samsung says it has made progress on HBM front

Trending News

US stocks open in the green as earnings drive stock moves: Nasdaq up 0.3%

US stocks open in the green as earnings drive stock moves: Nasdaq up 0.3%

August 6, 2025
Why Is Binance’s CZ Suing Bloomberg?

Why Is Binance’s CZ Suing Bloomberg?

July 12, 2025
Strategas explains why this is ‘the most investable election of our lifetimes’

Strategas explains why this is ‘the most investable election of our lifetimes’

October 22, 2024
Subscribe to Insightful Word


    Recent News

    Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in

    Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in

    August 28, 2025
    SentinelOne stock price forecast ahead of earnings: buy or sell?

    SentinelOne stock price forecast ahead of earnings: buy or sell?

    August 28, 2025
    Tesla wants millions of robotaxis by 2025, but will Waymo win the long game?

    Tesla wants millions of robotaxis by 2025, but will Waymo win the long game?

    August 28, 2025
    Urban Outfitters stock slides 4% despite strong quarter on cautious outlook

    Urban Outfitters stock slides 4% despite strong quarter on cautious outlook

    August 28, 2025

    Recent News

    Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in

    Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in

    August 28, 2025
    SentinelOne stock price forecast ahead of earnings: buy or sell?

    SentinelOne stock price forecast ahead of earnings: buy or sell?

    August 28, 2025

    Latest News

    • Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in
    • SentinelOne stock price forecast ahead of earnings: buy or sell?
    • Tesla wants millions of robotaxis by 2025, but will Waymo win the long game?

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.