12/12/2024, 6:34:03 pm

Sticky US inflation and Trump tariffs cast doubt on Fed’s rate cut path

Although US CPI inflation recorded its sharpest increase in seven months, it aligned with forecasts and did not disrupt expectations of a 25 bps rate cut by the US Federal Reserve next week. However, the November inflation data highlighted that the Fed still faces significant challenges in bringing inflation below its 2 per cent target, leaving the outlook for future rate cuts uncertain.