A near unanimous 17 of 19 Fed officials project that the policy rate will be lower by the end of 2024 than it is now
Fed's 'soft landing' scenario still on the table
The main market focus will be on Fed officials' updated economic and interest rate projections, with the U.S. central bank expected to leave rates unchanged for the third consecutive meeting
The consumer price index edged up 0.1% last month after being unchanged in October, the Labor Department's Bureau of Labor Statistics said Tuesday
This year's steady slowdown in US inflation likely continued in November, though the latest data may also point to steadily higher prices in some areas of the economy. Tuesday's inflation report from the Labor Department is expected to show that businesses kept overall prices unchanged for a second straight month. Falling gas prices, in particular, are thought to have offset a rise in food costs from October to November. And compared with a year earlier, inflation is expected to ease to 3.1 per cent from 3.2 per cent in October, according to a survey of economists by FactSet. But a closely watched category called core prices, which excludes volatile food and energy costs, is predicted to rise 0.3 per cent from October to November a monthly pace that far outpaces the Federal Reserve's 2 per cent annual inflation target. On a year-over-year basis, core prices are expected to increase 4 per cent, the same as in October. The Fed considers core prices to be a better guide to the likely
In the limelight now, is the November US consumer price report due on Tuesday, which could offer more rate cut clues ahead of the Fed's statement and Chair Jerome Powell's comments on Wednesday
Nonfarm payrolls increased by 199,000 jobs last month, the Labor Department's Bureau of Labor Statistics (BLS) said in its closely watched employment report on Friday
A separate report Friday showed U.S. consumer sentiment improved more than expected in December as households saw inflation pressures easing
US data this week will be closely watched for new clues on the strength of the economy, with Friday's jobs report for November the main focus
"Market pricing for rate cuts is a bit overdone in our view," said Wei Li, Global Chief Investment Strategist for BlackRock. "Rate volatility is here to stay"
Nifty50 also takes wing to reach fresh high
Powell and Fed Governor Lisa Cook, who earned her bachelor's degree at Spelman College, were scheduled to participate in a roundtable discussion with local entrepreneurs later on Friday
November was a blockbuster month for the Nifty index, which rose 5.5 per cent, the most since July 2022
The dollar gained as investors took profits on bets it would weaken further and shrugged off economic data suggesting the Fed could be done hiking rates
Furthermore, the market is projecting a total increase of a minimum of 15-20 per cent in corporate bond issuances for the entire current financial year compared to the last year
The flows in these four companies will range between Rs 1,200 crore and Rs 2,000 crore
Extended drop in US bond yields and dollar fuels optimism of earlier-than-expected interest rate decline
"Alternatively, the war is still bubbling, simmering away," Rodda said
Gruenberg said the review would look into conduct across the agency and he hoped the study would be completed within 90 days
Data on Wednesday showed US producer prices fell the most in 3-1/2 years in October, while another set of data on Tuesday highlighted that US consumer prices were unchanged in October