The article also mentions that several Fed officials reiterated their deep uncertainty over how far the central bank will need to lower rates, highlighting the difficulty policymakers face in trying to determine the right setting to keep the economy on an even keel. Despite the market relief with Wednesday’s CPI report, the latest figures also underscore the slow and frustrating nature of the battle against inflation, which has often moved sideways on its broader path down.
Key takeaways:
- Swap traders have increased the probability of the Federal Reserve cutting rates again on Dec. 18 to about 80%.
- Despite a consumer price index that matched estimates, several Fed officials reiterated their deep uncertainty over how far the central bank will need to lower rates.
- Investors are increasingly concerned about the longer-term outlook of US inflation, despite shrugging off the latest news on it.
- Corporate highlights include JBS SA posting its best quarterly profits in two years due to increased chicken consumption, and Advanced Micro Devices Inc. shedding about a thousand jobs to refocus on newer markets like artificial intelligence chips.