Investment Insights Amid Stubborn Inflation

Stubborn inflation in the U.S. could lead the Federal Reserve to reconsider rate cuts, as the economy remains strong. The current inflation rate showed an annual gain exceeding forecasts, leading to cautious sentiment around potential cuts in December. Experts suggest that cutting interest rates in the face of persistent inflation might not be the best decision and could even risk overheating the economy. Additionally, concerns linger about the Fed's ability to correctly identify a neutral interest rate, complicating their approach to monetary policy.