The Market Brief
Hey team. Futures rise following in-line CPI report, strengthening expectations of further Federal Reserve rate cuts.
Let’s re-cap yesterday’s session and see what’s next!
Impact Snapshot
November US CPI annual inflation rises 2.7%, in line with expectations.
Macro Viewpoint
US stock futures rose after the latest inflation data matched economists' expectations, reinforcing the view that the Federal Reserve will continue cutting interest rates.
Consumer prices accelerated at a faster annual pace in November, highlighting that inflation remains a concern for both households and policymakers.
The consumer price index showed a 12-month inflation rate of 2.7%, following a 0.3% monthly increase.
This data supports the expectation that the Federal Reserve will proceed with interest rate cuts at its December meeting next week. Fed funds futures indicate an over 87% probability that the central bank will lower rates at this gathering.
