If there is an unexpected rise in CPI tomorrow night, it may trigger the Federal Reserve to pause interest rate cuts earlier

2024-12-10 21:49:48

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ChainCatcher news, according to Jinshi, the U.S. CPI report for November will be released on Wednesday. Economists expect the year-on-year CPI growth rate to be 2.7%, slightly higher than October's 2.6%. Bank of America strategists stated that this inflation data could be particularly influential for U.S. stocks, especially after the market's muted reaction to CPI readings over the past few months.

The strategists added, "Conversely, a stronger CPI data could reignite volatility, especially after U.S. stocks rebounded by 5% post-election." More importantly, the inflation data will impact the Federal Reserve's upcoming interest rate decisions. If there is an unexpected upside, it could increase the likelihood of the Fed pausing its rate-cutting cycle sooner.

According to the CME Group's FedWatch Tool, the market expects about an 86% probability that the Federal Reserve will lower rates by another 25 basis points at next week's meeting.

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