Capital Economics: Next week's CPI will be the last data point to prevent the Fed from cutting rates this month

ChainCatcher news, according to Jinshi reports, Capital Economics analyst Stephen Brown stated that the November non-farm payroll data shows that the U.S. labor market has not collapsed, but it has not heated up either. Therefore, next week's CPI and PPI reports may become the last set of data to prevent the Federal Reserve from cutting interest rates in December.

He said that the Federal Reserve "may be somewhat concerned about an average hourly wage increase of 0.4% month-on-month; however, given that the year-on-year growth rate is still 4.0%, it is not a major issue at the moment." Brown predicts that core inflation in November will show weak growth, which will make a 25 basis point rate cut more likely than a pause in rate cuts.