Fed Faces Dilemma: Balancing Inflation Management and a Slowing Labor Market in December Choice
- The U.S. Federal Reserve is likely to cut rates by 25 basis points in December, marking the third consecutive reduction to a 3.50%-3.75% range. - Internal FOMC divisions and government shutdown-related data gaps complicate the decision, with labor market softness and persistent inflation above 2% key concerns. - Market expectations for a December cut have dropped to 63% as investors weigh labor resilience against inflation risks from tariffs and supply disruptions. - Divergent FOMC views persist, with so
According to a Reuters survey of 84 out of 105 economists, the U.S. Federal Reserve is expected to lower interest rates by 25 basis points in December, a slight increase in consensus compared to last month
The outcome will largely depend on labor market conditions, which have recently shown some weakness. Private data, such as ADP’s latest figures indicating an average of 11,250 jobs lost weekly in late October, have heightened worries about a softening job market
Investor confidence in a December rate cut has declined somewhat, with the likelihood now at 63%, down from 92% a month earlier
The future direction is still unclear. Nearly half of the economists polled anticipate the federal funds rate will fall to between 3.25% and 3.50% by the next quarter, but there is no agreement on where rates will stand by the end of 2026
As the December meeting draws near, investors will be watching closely to see if Powell can bring unity to the FOMC amid differing opinions. Any delays in resolving the government shutdown or unexpected jumps in inflation could further complicate the outlook, but for now, a December rate cut appears to be the most probable outcome
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Stellar News Today: C3.ai Faces AI Challenges While Stellar's Blockchain Thrives: Changing Currents in Technology
- C3.ai faces leadership turmoil, 54% stock drop, and legal claims over misleading growth statements amid $116.8M Q1 2026 net loss. - Stellar (XLM) gains traction with BRL stablecoin partnerships, tokenized energy projects, and 1B+ Q3 2025 transactions boosting institutional adoption. - Stellar's ecosystem expands via 37% developer growth, $562M RWA market, and IBM's integration of its security protocols for tokenized infrastructure. - Contrasting trajectories highlight shifting tech priorities: speculativ
Algorand Moves to Passwordless Security to Address Quantum Risks and Meet Regulatory Requirements
- Algorand launches passwordless login via Pera Wallet using FIDO2 standards to combat quantum threats and regulatory demands. - Industry trends show firms like AMI adopting post-quantum cryptography while Prisma AI develops AI-specific security tools. - Ledger explores NY IPO amid rising crypto storage demand, while BIO-key expands passwordless solutions in Middle East/Africa. - NIST/NCSC urge quantum-resistant algorithm migration, positioning passwordless tech as critical for financial/healthcare complia
Ethereum News Update: Connecting Crypto Enthusiasts and Card Game Fans: Funtico's EV2 Presale Transforms Web3 Entry
- Funtico launches EV2 presale, allocating 40% tokens to early buyers via crypto and credit cards. - EV2 blends sci-fi shooter mechanics with progression-driven gameplay, featuring five character classes and high-fidelity visuals. - Token deployed on Ethereum to leverage DeFi infrastructure, offering TICO bonuses for presale participants. - Flexible payments include ETH, USDT, BTC, and credit cards, incentivizing early adoption. - Phased rollout aims to build community engagement through tournaments and NF
XRP News Update: XRP ETF Approaches Debut While Profit-Taking Challenges $2.35 Support Level
- XRP's price surged 10% to $2.43 amid anticipation for its first spot ETF, with Canary's SEC filing signaling a potential Thursday launch. - Profit-taking by long-term holders spiked 240% since September, pushing daily realizations to $220M as prices retreated to $2.30. - Ripple's $125M SEC settlement and XRP Ledger's 99.999% uptime bolstered fundamentals, while a partnership with Mastercard/Gemini expands cross-border payment integration. - Competition from AI/meme tokens and liquidity shifts threaten XR
