The Fed is about to make its interest rate decision soon, Jiaxin Wealth Management predicts a pause in rate adjustments until early next year.
2024-12-18 21:03
Zhitongcaijing
Lin Changjie stated that recent employment data shows that the US labor market is experiencing a cooling phase, and market confidence in the Federal Reserve announcing an interest rate cut at its December meeting is increasing.
The Federal Reserve will announce its interest rate decision on Thursday (December 19) in Hong Kong time. Lin Changjie, a financial advisor at Jiaxin Wealth Management Hong Kong Limited, said that the Federal Reserve has moved from the peak of 9% inflation in mid-2022 to the final stage of 2%, but this journey will be challenging. According to last week's inflation report, the US Consumer Price Index has slightly rebounded, posing greater difficulties for policymakers. However, this will not have a big impact on the upcoming interest rate decision.
Lin Changjie stated that recent employment data shows that the US labor market is experiencing a cooling off period, and market confidence in the Federal Reserve announcing a rate cut in December is increasing. As the Federal Reserve is not inclined to take unpredictable actions, the central bank is unlikely to keep rates unchanged in December unless there is a major shift. Looking ahead, in the context of ongoing inflation, it is expected that the Federal Reserve will pause rate adjustments in early 2025.