BlockBeats news, on December 19, analyst Yohay Elam stated that inflation is declining, but the recent pace has made many uneasy, with data showing that core CPI is still above 3%. There is a good reason for prices continuing to rise rapidly, namely a strong economy and a resilient job market.
Although current data provides the Fed with reason to cut rates for the third consecutive time, officials may hint that the pace of lowering borrowing costs will slow next year. The key to the market's initial reaction lies in the Fed's economic projections summary, specifically the dot plot, where Fed officials' forecasts for inflation, unemployment rate, economic growth, and interest rates are crucial. This is where the hawks may show their claws. Investors are worried that the Fed will only signal two rate cuts in 2025.
Federal Reserve Chairman Powell's press conference may prove that the situation is different. He may alleviate concerns and open the door for further rate cuts. Overall, the Fed's last interest rate decision in 2024 is a complex and highly volatile event. (Jin Shi)
