Fed Delivers Rate Cut, But A Pause Is Possible In December
- The Fed delivered the widely expected 25 bps rate cut yesterday, but it sounds less confident on inflation management.
- With core PCE inflation figures slightly above target and core CPI inflation inching up in September, the next two CPI inflation prints are worth looking out for.
- A pause in rate cuts can't be ruled out in December if core inflation continues to come in slightly higher and even if the labor market weakens further.
- With a stable economy and gains across sectors YTD, discerning stock picking across sectors is a potentially good way forward for investors now.
Douglas Rissing
The Federal Open Markets Committee [FOMC] delivered a rate cut of 25bps to 4.5%-4.75% yesterday. This might have not been a surprise to anyone, but the details of the Federal Open Markets Committee [FOMC] statement are still worth
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