While November’s headline and core CPI rates of 7.1% and 6% exhibited remarkable improvement from October’s 7.7% and 6.3% increases, respectively, it is still a long way off from the 2% targeted by the Federal Reserve.
Hence, while the Fed is expected to announce a 50-bps interest rate hike tomorrow, stronger-than-desired employment data for November is set to leave lingering concerns regarding the target interest rate Fed might reach before an eventual pivot and its effect on near-term economic growth.
