Market Wire, North America

For a third consecutive meeting, the US Federal Reserve’s policy committee held its benchmark interest rate at a 22-year high, but indicated its tightening cycle was likely done, with easing likely to begin in the new year. After 11 increases since March 2022, the target range for the federal funds rate was maintained between 5.25 and 5.5 percent. In a slightly more dovish statement, officials acknowledged that “inflation has eased over the past year,” and softened language to suggest that incoming data would be monitored to determine whether “any” additional policy firming would be appropriate. According to the accompanying “dot...

US consumer inflation softened as expected last month, but underlying price pressures remained stubbornly strong, reinforcing odds on a more neutral stance from the Federal Reserve at tomorrow’s meeting – and beyond.  According to data published by the Bureau of Labor Statistics this morning, the core consumer price index – with highly-volatile food and energy prices excluded – rose 4.0 percent in November from the same period last year, up 0.3 percent on a month-over-month basis. This was precisely in line with consensus estimates among economists polled by the major data providers ahead of the release.  On a headline all-items...

The US job creation engine kept humming in November, suggesting that the Federal Reserve has farther to go in slowing the economy – policymakers may have to hold rates at prevailing levels for longer. According to data released by the Bureau of Labor Statistics this morning, 199,000 jobs were added, and the unemployment rate crept lower to 3.8 percent, heading back toward historic lows. Average hourly earnings rose 0.4 percent year-over-year, solidly topping expectations. Ahead of the release, consensus estimates had pointed to a 180,000-job gain (although the “whisper number” was likely lower) and the unemployment rate was seen holding...