Access Restricted for EU Residents
You are attempting to access a website operated by an entity not regulated in the EU. Products and services on this website do not comply with EU laws or ESMA investor-protection standards.
As an EU resident, you cannot proceed to the offshore website.
Please continue on the EU-regulated website to ensure full regulatory protection.
Thursday Nov 13 2025 00:00
2 min
A recent Reuters survey revealed that 80% of economists anticipate the Federal Reserve to cut its benchmark interest rate again by 25 basis points at its upcoming December meeting. This expectation is driven by concerns about a slowing labor market, although some members of the Federal Open Market Committee (FOMC) have reservations.
There is a clear division within the FOMC regarding whether an additional rate cut is warranted, particularly in the face of missing key economic data due to the previous government shutdown. Federal Reserve Chairman Jerome Powell has highlighted that a December rate cut is not a foregone conclusion.
Abigail Watt, a US economist at UBS, suggests that the labor market remains relatively soft, supporting the case for a December rate cut. However, she cautioned that upcoming economic data could alter this assessment. She also noted that disagreements over the extent to which labor market concerns dominate inflation dynamics may intensify in the coming year.
The Personal Consumption Expenditures (PCE) index, the Fed's preferred inflation gauge, has remained above the 2% target for over four years. Josh Hirt, a senior economist at Vanguard, warns that prolonged inflation could impact the Fed's credibility. Hirt believes it is essential to approach the idea that tariff-driven inflation is purely transitory with caution.
The US economy is expected to slow to a 1.0% growth rate in the current quarter, following a 3.8% expansion in the second quarter. In the longer term, annual growth is projected to average around 1.8% through 2027, a level that Fed officials deem consistent with maintaining stable inflation.
Despite private sector data suggesting layoffs, approximately 70% of survey participants believe that job growth has remained largely stable since the government shutdown began. Stephen Juneau, a US economist at Bank of America Securities, suggests that the labor market is cooling but not collapsing. He adds that more evidence of a deteriorating labor market is needed before a December rate cut is certain.
Risk Warning: This article is provided for informational purposes only and does not constitute investment advice, investment research, or a recommendation to trade. The views expressed are those of the author and do not necessarily reflect the position of Markets.com. When considering shares, indices, forex (foreign exchange), and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and may not be suitable for all investors. Leveraged products can result in capital loss. Past performance is not indicative of future results. Before trading, ensure you fully understand the risks involved and consider your investment objectives and level of experience. Cryptocurrency CFD trading restrictions may apply depending on jurisdiction.
Latest
View all
Thursday, 13 August 2026
5 min
Wednesday, 12 August 2026
7 min
Wednesday, 12 August 2026
7 min
Thursday, 13 August 2026
Indices
Gold Price Today, August 14: XAU/USD Falls Below $4,350 as Profit-Taking Deepens
Thursday, 13 August 2026
Indices
SanDisk Stock Jumps Nearly 14% on Bullish 2030 Targets, Lam Research Gains Over 3%
Thursday, 13 August 2026
Indices
KOSPI Rises 2.7% Towards 7,000 as SK Hynix Gains 6% and Kioxia Jumps 7%
Wednesday, 12 August 2026
Indices
Gold Price Today, August 13: Gold Climbs Above $4,400 as Cooler US CPI Cuts Fed Hike Bets
EN
