The first inflation data after the US election stabilized, and the Fed may cut interest rates again in December

The Wall Street Journal commented on the US CPI data and pointed out that despite the stabilization of inflation data, Fed policymakers currently seem likely to cut interest rates by another 25 basis points when they hold their last meeting of the year next month. This is first of all because, despite the bumps along the way, inflation seems to be on a cooling trend. In addition, there is still a certain degree of "catch-up inflation" in the data. Fed officials also believe that the current level of short-term interest rates is restrictive, which means that without further interest rate cuts, the job market may cool further than they expect, and even put the economy at risk of recession. That said, the US Department of Labor will release its next consumer inflation report on December 11, a week ahead of the Fed meeting. If the data is much stronger than Fed officials hope, they may choose to temporarily suspend further interest rate cuts. This is even more true if the November employment report, scheduled for release on December 6, shows a rebound in employment, confirming that last month's slowdown was merely a reflection of hurricane- and strike-related problems. (Jinshi)