The Fed's preferred gauge shows inflationary pressures easing, with a rise in rate cut expectations for 2025

BlockBeats News, December 20th, the Fed-preferred inflation gauge showed a modest performance in November, which is a step in the right direction for policymakers seeking further rate cuts in 2025. This data should help alleviate Fed officials' concerns about the inflation outlook. Fed officials released their latest forecasts this week, indicating higher prices and rates in 2025.

These new forecasts triggered a stock sell-off as investors had already priced in expectations of policy tightening. Details on prices revealed a broad-based inflation slowdown. Core services prices (a closely watched category excluding housing and energy) rose 0.2% month-on-month, the lowest level since August. Core goods prices (excluding food and energy) saw their first decline in three months. (FXStreet)