Stock Market Indices Surge as Inflation Data Supports Anticipated Fed Rate Cut

The latest inflation figures released on Wednesday indicated that consumer prices increased as expected in October, ⁢reinforcing the likelihood of ‌the Federal Reserve reducing interest rates ‍once again in December.

“Progress is being made in addressing inflation,” remarked Claudia Sahm, chief ‌economist⁤ at New Century Advisors, in response to the data. “While ⁣we are moving in⁣ the right direction, it ‍has‍ been a gradual⁣ process. This month’s results are consistent with that gradual progress.”

Despite this ‌positive development, there is‍ still uncertainty about future trends‌ as economists caution about a potential resurgence of inflation following⁤ Donald Trump’s ⁤election as the next president of the United States.

Trump’s proposed policies ⁤have raised concerns about their ⁣potential to increase inflation due to his campaign pledges of imposing high tariffs on imports, reducing taxes for‌ businesses, and implementing stricter immigration⁤ policies.

Following the release of Wednesday’s‍ data,⁢ financial markets continued⁣ to anticipate ‍a further 25 basis point rate cut in December after a ⁢similar reduction by the central bank last week. Traders…

2024-11-13 12:44:36
Article from finance.yahoo.com