News

📰 U.S. ACTIVITY DATA INDICATE FED MAY HAVE ROOM TO KEEP CUTTING Fresh U.S. activity data indicate that the Fed could find space to continue to cut interest rates, Pantheon’s Oliver Allen writes. Composite and services PMIs rose while manufacturing fell. “December’s PMI brought clearer signs of a post-election boost to business confidence, which likely will provide some support to growth in the coming months,” Allen says. He notes that “the output prices index of the services survey dipped…indicating a further slowdown in underlying services inflation ahead.” Although the trend looks benign, “the tariffs and other potentially inflationary policies favored by the incoming administration threaten to make the Fed’s life much more difficult,” Allen says.

December 16, 2024
Frank

U.S. ACTIVITY DATA INDICATE FED MAY HAVE ROOM TO KEEP CUTTING

Fresh U.S. activity data indicate that the Fed could find space to continue to cut interest rates, Pantheon’s Oliver Allen writes. Composite and services PMIs rose while manufacturing fell. “December’s PMI brought clearer signs of a post-election boost to business confidence, which likely will provide some support to growth in the coming months,” Allen says. He notes that “the output prices index of the services survey dipped…indicating a further slowdown in underlying services inflation ahead.” Although the trend looks benign, “the tariffs and other potentially inflationary policies favored by the incoming administration threaten to make the Fed’s life much more difficult,” Allen says.