Today, Fed Chair Powell said, “The economy is not sending any signals that we need to be in a hurry to lower rates.” This change in tone implies that the Fed may be shifting course on rate cuts. The prediction market now shows a 38% probability of no cut in December after Powell’s remarks.
October CPI inflation increased to 2.6%, as expected, with Core CPI inflation at 3.3%, also as expected. October PPI inflation rose to 2.4%, above the forecasted 2.3%, while Core PPI inflation increased to 3.1%, surpassing the expected 3.0%.
Both PPI and CPI inflation are now officially back on the rise.
All eyes are on November’s Jobs Report.
Some stats:
- Home prices increased 5.8% year-over-year. The median home sales price hit $386,970.
- Only 24% of homebuyers in November are first-time buyers, the lowest in at least 45 years.
- 36% of Americans say they would rent if they were planning to move.
