Federal Reserve Officials Signal Likely December Rate Cut Amid Inflation Concerns

Fed policymakers weigh another rate reduction as inflation shows signs of stalling above the 2% target, with upcoming economic data set to influence the final decision.

Federal Reserve Governor Christopher Waller and other officials indicate support for a December rate cut, but emphasize the decision hinges on forthcoming economic data.
Inflation progress has slowed, with core inflation at 2.8% in October, raising concerns about its persistence above the Fed's 2% target.
The Fed has already reduced rates by 75 basis points since September, with another 25 basis point cut expected to bring rates to a range of 4.25%-4.50%.
Economic growth remains robust, with Q3 GDP at 2.8% and labor market indicators showing moderate cooling but continued strength.
Uncertainty surrounding President-elect Donald Trump's proposed policies, including tariffs and immigration changes, adds complexity to the Fed's long-term outlook.