The Federal Reserve's expectation of interest rate cuts in 2025 is rising, possibly due to favored indicators showing a slowdown in price pressures
ChainCatcher news, according to Jinshi reports, the inflation indicator favored by the Federal Reserve showed moderate performance in November, marking a step in the right direction for policymakers seeking further interest rate cuts in 2025. This data should help alleviate the concerns of Federal Reserve officials regarding the inflation outlook.
Federal Reserve officials released their latest forecasts this week, indicating that prices and interest rates will be higher in 2025. These new forecasts triggered a sell-off in U.S. stocks as investors had already priced in expectations of policy tightening. Details regarding prices show a general slowdown in inflation. Core service prices (a closely watched category excluding housing and energy) rose 0.2% month-on-month, the lowest level since August. Core goods prices (excluding food and energy) declined for the first time in three months.