{"id":95739,"date":"2024-09-12T00:00:00","date_gmt":"2024-09-12T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/us-fed-may-reconsider-larger-rate-cut-as-inflation-persists\/"},"modified":"2024-09-12T00:00:00","modified_gmt":"2024-09-12T00:00:00","slug":"us-fed-may-reconsider-larger-rate-cut-as-inflation-persists","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2024\/09\/12\/us-fed-may-reconsider-larger-rate-cut-as-inflation-persists\/","title":{"rendered":"US Fed may reconsider larger rate cut as inflation persists"},"content":{"rendered":"

US Fed looks more likely to go for a smaller rate cut as inflation persists:<\/strong> US consumer prices rose 0.2% in August, matching July's increase, while the annual CPI advanced 2.5%, the smallest rise since February 2021, according to Bureau of Labor Statistics figures (pdf)<\/a>. The index grew 0.3% without counting volatile items like food and energy \u2014 the most in four months. <\/p>\n

The persistent growth points to the likelihood of a smaller rate cut at the Fed\u2019s meeting next week<\/strong>, analysts say. Traders now see an 85% chance of a quarter-point cut next week, according to CME Group\u2019s FedWatch<\/a>. <\/p>\n

Start slow, and upsize later? <\/strong>\u201cThe Fed may start rate cuts a lot like how they started the hikes: 25 bps at first and then have the option to upsize the cuts as necessary,\u201d chief economist at Annex Wealth Management Brian Jacobsen told Reuters<\/a>. <\/p>\n

Market reax:<\/strong> US markets exhibited cautious movements following the latest inflation data, dipping slightly before paring gains on the back of a tech rally. The S&P 500 fell 0.3%, before closing up 1.1%, while the Nasdaq rallied 2.17%. <\/p>\n

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ALSO WORTH KNOWING- <\/p>\n