According to Odaily, JPMorgan Asset Management's bond expert Bill Eigen has issued a warning to the market ahead of the Federal Reserve's upcoming meeting. He cautioned that the Fed might have less room to cut interest rates than anticipated, advising central banks against further rate reductions in December. Eigen highlighted several indicators suggesting that the U.S. economy is heating up again. These include robust GDP growth, slightly higher-than-expected inflation data from the previous month, and record-high stock prices.
Wages, services, and housing inflation appear particularly challenging, with the potential to rise further. Housing prices, in particular, remain a significant driver of inflation as of October, having increased by 4.9% year-over-year. The Federal Reserve has already reduced interest rates by 75 basis points this year, which may bring them closer to the neutral rate than previously thought.