Inflation maintains a firmer downward trend. But Wells Fargo economists suspect the FOMC remains concerned about persistent strength in labor costs.
There is still work to be done in the fight against inflation
“The Consumer Price Index was below expectations in November, with a 0.1% increase in the general index and a 0.2% increase in the core. However, the sustained return to the Fed’s inflation target remains Services excluding accommodation and travel rebounded in November, and the overall core index has posted an annualized rate of 4.3% over the past three months.”
“Although the pace of inflation is expected to continue to slow in the coming months, the pace of wage growth of about 5% is likely to keep the Fed in anti-inflation mode for some time.”
“We expect the Fed to proceed with its noted 50 basis point hike tomorrow, although the prospect of a further cut to a 25 basis point hike at its first meeting in 2023 has been raised by this report.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
