Observations of a 0.25% rate cut by the Federal Reserve in November and December, influenced by the PPI.

October 12, 2024, 12:10 AM GMT+9

In the financial markets on the 11th, following the release of the US Wholesale Price Index for September, it is expected that the Federal Reserve (FRB) will implement a 25 basis point rate cut at the Federal Open Market Committee (FOMC) meetings in November and December.
The Producer Price Index (PPI) for September announced by the Department of Labor remained unchanged from the previous month (seasonally adjusted). August was unrevised at 0.2% increase.
In the financial markets, ahead of the FOMC meeting on November 6-7 to be held by the FRB, the probability of keeping the Federal Funds (FF) rate target at 4.75%-5.00% is incorporated at 17%. It was around 15% before the PPI announcement.
However, it is broadly expected that rate cuts of 25 basis points will continue at each FOMC meeting in 2025, reaching a policy interest rate range of 3.50%-3.75% by mid-next year.
Last month, the FRB implemented a significant 50 basis point rate cut in response to the low inflation rate and a slowdown in the labor market.