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Ballestas Group

Inflation Stagnant and Fed Gradual on Key Thanksgiving Week

This week, despite the market being closed on Thursday for the Thanksgiving holiday, the U.S. has seen a number of key events, with mixed data reflecting both challenges and optimism in the economic outlook.

On the inflation front, the October Personal Consumption Expenditure (PCE) Price Index rose 0.3% month-on-month, in line with market expectations. However, the data reveal that progress toward disinflation has stalled, as the three-month annualized rate continues to rise for the third consecutive month. The minutes of the Federal Reserve's November meeting suggested that rate cuts will continue gradually, with a possible pause in the early months of 2025 as monetary policy moves closer to neutral. Analysts believe that economic policies proposed by President-elect Donald Trump, such as higher tariffs, could influence the central bank's caution in adjusting interest rates.



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