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Will Sticky Inflation Stop The Fed Rate Cut?


Published on 2024-12-16 03:21:17 - Forbes
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  • Higher inflation and a resilient economy have some wondering if the Fed will cut rates this week. This week will be full of economic data ahead of the Christmas week.

The article by Bill Stone on Forbes, published on December 15, 2024, discusses the potential impact of persistent inflation on the Federal Reserve's decision regarding interest rate cuts. Despite expectations for a rate reduction, recent data indicates that inflation remains stubbornly high, which could lead the Fed to reconsider its strategy. The article explores various economic indicators, including the Consumer Price Index (CPI) and Producer Price Index (PPI), which have shown that inflation is not decreasing as anticipated. This "sticky inflation" might compel the Federal Reserve to maintain or even increase rates to curb inflation, rather than cutting them to stimulate economic growth. The piece also mentions the Fed's cautious approach, weighing the risks of inflation against economic slowdown, and how market reactions have been mixed, with some investors betting on a dovish pivot while others prepare for a hawkish stance.

Read the Full Forbes Article at:
[ https://www.forbes.com/sites/bill_stone/2024/12/15/will-sticky-inflation-stop-the-fed-rate-cut/ ]