Deutsche Bank suggests Fed may pause rate cuts due to improving economic data

From Investing.com: 2024-11-02 05:10:45

Deutsche Bank strategists suggest that while recent economic data may lead to a pause in Federal Reserve rate cuts, conditions for such a move are still stringent. A 25-basis-point cut in December is predicted, with inflation needing to be more persistent and labor market risks decreasing for a pause to be considered. Factors like seasonal inflation effects and the election outcome could influence the Fed’s decision, with a potential pivot to a pause in rate cuts by early 2025. The Fed’s rate trajectory is closely tied to estimates of the neutral rate, with limited room for further cuts before approaching the neutral range.



Read more at Investing.com: What would it take for the Fed to pause rate cuts? Deutsche Bank weighs in By Investing.com