Inflation May Prove Stickier, Making Deeper 2025 Rate Cuts Less Likely

by Simon Moore
Forbes

The Federal Open Market Committee started cutting interest rates in September and that broad trend looks set to continue. However, fixed income markets now see perhaps only two more cuts in 2025 according to the CME FedWatch Tool.

That’s in part as inflation, though cooling overall, is not immediately on track for the FOMC’s 2% annual goal. It’s currently closer to 3%. In addition, the jobs market and economic growth appears to be holding up relatively well on recent reports for November and Q3, perhaps adding a little inflationary pressure, even as unemployment is edging up from low levels.

Continue Reading at Forbes.com…

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