From Investing.com: 2024-11-13 09:29:55

Traders are now expecting a higher chance of a quarter-point interest rate cut by the Federal Reserve in December, with a probability of reaching the 4.25%-4.5% range at 80%.

Expectations for a slower pace of rate reductions in the following year are rising, with forecasts that the Fed will pause once the policy rate hits 3.75%-4%.

Data from the U.S. Labor Department shows a slight uptick in headline inflation for October, with the consumer price index increasing by 2.6% year-over-year and 0.2% month-over-month.

UBS Global Wealth Management’s Chief Investment Officer recommends shifting cash into fixed income and sees US equities as attractive amidst Fed easing and strong economic growth.

The Federal Reserve recently cut borrowing costs by 25 basis points, citing “somewhat elevated” inflation but balanced risks in maintaining stable price growth and employment.



Read more at Investing.com: Markets price in higher chance of Fed rate cut in December after in-line CPI data By Investing.com