Federal Reserve expected to cut rates in December, likely pause in January, with focus on future cuts

From Investing.com: 2024-12-13 07:17:00

The Federal Reserve is expected to cut rates in December and likely pause in January, following other central banks. Market participants are anticipating a quarter-point reduction next week, with an 80% probability of policymakers taking a break in January. President-elect Trump’s policies may fuel inflation, but the strong US economy suggests no rush for rate cuts. Investors will focus on hints of a January pause and future rate cuts during 2025. Meanwhile, the Bank of Japan is facing a decision on whether to hike rates, with the BoE appearing unlikely to cut rates at their upcoming meeting. Additionally, upcoming data releases include flash PMIs, CPIs, and core PCE numbers.



Read more at Investing.com: Week Ahead: Fed, BoJ and BoE Conclude End-Year Policy Decisions