The November CPI figures released yesterday cemented the case for a 25bp cut from the FOMC next week, igniting a sharp rally in risk assets.
While these metrics remain somewhat on the tepid side, the figures are highly unlikely to deter the FOMC from further normalising policy next week.
Policymakers likely concerned about the inflationary impact of incoming President Trump's tariff plans, which may risk embedding persistent price pressures.
The pace of policy normalisation next year likely to be considerably slower than that seen in 2024, suggesting a 'slip' at either the January or March meeting.
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