Two Strong Inflation Reports Complicate Fed's 2025 Rate Cut Plans

Reported 10 days ago

October's inflation data showed persistent inflation challenges for the Federal Reserve, complicating their anticipated rate cuts in 2025. The 'core' Consumer Price Index indicated a consistent 3.3% rise, while the Producer Price Index also exceeded expectations, contributing to concerns over a gradual rate-cutting approach. Economists predict a maximum of 75 basis points in cuts, reflecting uncertainty around future inflation trends, partly due to potential economic policies from President-elect Donald Trump. Despite rising bond yields, the stock market remains buoyant, underscoring a resilient economy.

Source: YAHOO

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