As of this writing, Dec. 9, the Fed has begun its December meeting and will announce the policy decision tomorrow. It is the last meeting for 2025, and the U.S. central bank is expected to cut rates by 25 basis points, which would be its third consecutive cut. While the inflation number is stubbornly above 2%, which the Fed targets, a cooling labor market builds the case for a cut. Moreover, several leading indicators point to a slowdown in the world’s largest economy, which would mean that Jerome Powell and Co. might yet again lean towards dovishness even as they haven’t fully won the war against inflation.
