Expectations for a 2025 Fed rate cut rise as preferred indicators show slowing price pressures

the inflation indicators favored by the Federal Reserve showed mild performance in November, which is a step in the right direction for policy makers seeking further interest rate cuts in 2025. These data should help ease Fed officials' concerns about inflation prospects. Fed officials released their latest forecasts this week, showing that prices and interest rates will be higher in 2025. These new forecasts have triggered a sell-off in US stocks as investors have already digested expectations of policy tightening. Details on prices show a general slowdown in inflation. Core service prices (a closely watched category excluding housing and energy) rose 0.2% month-on-month, the lowest level since August. Core commodity prices (excluding food and energy) fell for the first time in three months.