Will the Fed cut rates again in December
Asked 9 days ago
Answer
Market experts and strategists are divided on whether the Fed will cut rates in December. Some, like UBS and iCapital, expect a cut due to softening labor markets and rising unemployment, while Fed minutes and several officials suggest most members see a December cut as unlikely. The possibility remains on the table, but uncertainty and debate persist among policymakers and market participants.
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Rising unemployment rate suggests Fed will cut rates in December
CNBC · 9 days ago
CNBC
9 days ago
- The Federal Reserve is considering a rate cut in December due to a rising unemployment rate and steady inflation projections. 21s
- A December rate cut would be the third risk management move, but further cuts next year are uncertain without a more dovish Fed. 44s
- Private credit markets face risks from high-valuation deals made in 2021-2022 and concerns about liquidity and defaults. 1m 21s
- Default rates in private credit remain at historical averages between 2% and 3.5%, with aggregate credit quality holding up. 2m 50s
- Ongoing questions about marks and liquidity in private credit markets are expected to be key issues moving forward. 3m 8s
References
CNBC
9 days agoRising unemployment rate suggests Fed will cut rates in December
Discussion centers on Fed odds, referencing a Wall Street Journal piece suggesting a potential hawkish rate cut in December. Basikas notes little has changed to justify a December cut, but rising unemployment and stable core PCE could prompt a risk management move.
