The Federal Reserve is expected to cut interest rates again next week, according to a not-exactly-encouraging inflation report. The consumer price index (CPI) in November rose 0.3% month over month and 2.7% year on year, with core CPI increasing 0.3% from October and 3.3% from the previous year.
While the numbers reflect a slight increase in inflation from October’s levels, stock futures traded higher before the bell, indicating that the Fed is unlikely to change its rate-cutting campaign. Economists and strategists agree that the data supports another 25 basis point rate cut at the next Federal Open Market Committee (FOMC) meeting.
According to Josh Hirt, senior U.S. economist at Vanguard, “The CPI print confirms the market consensus of another 25bps rate cut from the Federal Reserve.” Whitney Watson, co-chief investment officer at Goldman Sachs Asset Management, adds that “in-line core inflation clears the way for a rate cut at next week’s FOMC meeting.”
Other experts, such as Alicia Levine and Peter Boockvar, also support a rate cut, citing the decline in rental prices and stability in certain goods prices. Skyler Weinand notes that the data confirms the Fed is making progress on inflation, paving the way for future rate cuts.
Meanwhile, Take-Two Interactive has been named a top pick by Citi, with analyst Jason Bazinet citing robust sales of “Grand Theft Auto VI” and a strong pipeline of other intellectual properties.
Source: https://www.cnbc.com/2024/12/11/heres-the-wall-street-chatter-after-the-cpi-data.html