Fed officials signal caution – market expectations for December rate cuts continue to fall
📌 Mary Daly – San Francisco Fed President:
- “It’s too early to say we’ll see a rate cut in December.”
- Inflation (excluding tariffs) is falling but at a slow pace.
- Services inflation has not yet fallen at a steady pace.
- The labor market is slowing.
- The Fed needs to change its approach to the balance sheet.
📌 Loretta Mester/Hammack – Cleveland Fed:
- “Inflation remains high.”
- Concerns about the extent of labor market weakness.
- There is not enough basis to say price pressures have cooled as expected.
📌 Neel Kashkari – Minneapolis Fed:
- “Inflation is still around 3%, still too high.”
- The economy has mixed signals.
- The labor market continues to be under pressure and is weakening.
The market is waiting for the rest of 2025, "Fed continues to cut rates" looks increasingly bumpy. US stocks are also on fire as money leaves tech.$BTC
