Wall Street Breakfast

Fed cut assured despite stubborn inflation

Dec 11, 2024
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INSIGHT

Market Reaction to Inflation

  • Equity markets reacted positively to the November CPI figures, anticipating a Fed rate cut.
  • Despite sticky inflation, traders bet on lower rates, boosting growth stocks and impacting bond yields.
INSIGHT

November CPI Breakdown

  • November CPI rose 0.3%, slightly higher than previous months, pushing the annual rate to 2.7%.
  • Shelter, food, and energy were the primary drivers of the monthly increase.
ADVICE

Monitoring Goods Inflation

  • Watch goods inflation closely as it has been increasing since July.
  • The rise in goods inflation reached its highest point since May 2023, which requires attention.
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