ChainCatcher News: The Federal Reserve raised its target for the federal funds rate by 0.5 percentage points at the end of 2025. Citigroup economist Andrew Hollenhorst believes that the Fed may find itself in a state of helplessness. As core PCE rose by 0.1% month-on-month in November, the increase in prices is slowing down, and the Fed's eventual rate cut may exceed current expectations.

"In our base case, a softening labor market would lead the Fed to cut rates at each of its upcoming meetings." This view contrasts with the market's expectation that the Fed will pause rate cuts in January. "But even if we are wrong, a stagnant unemployment rate and slowing inflation would be enough to justify rate cuts at least at every meeting beyond January."