Analyzing the Fed’s Potential Rate Cut in December

As the Federal Reserve (Fed) prepares to release core Personal Consumption Expenditure (core PCE) data for October, investors are eagerly awaiting this key inflation gauge to determine the likelihood of a rate cut in December. The Fed considers core PCE as the best indicator of underlying price pressures, making it a crucial factor in their decision-making process.

What’s at Stake?

  • Will the Fed proceed with a third consecutive reduction to borrowing costs?
  • Market uncertainty surrounding the potential rate cut
  • Impact on the US Dollar, Gold prices, and stock market reactions

Additional Data Releases

With Thanksgiving approaching, several important economic indicators have been moved up for release, including weekly jobless claims, Durable Goods Orders, and an update on Gross Domestic Product (GDP) for the third quarter. This influx of data adds to the anticipation of a significant market reaction.

Market Expectations

  • The US Dollar’s performance hinges on strong data releases
  • Gold bulls are hoping for softer inflation numbers
  • Stock market investors are looking for a balance of low inflation and positive data outcomes

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