News & Insights

The Federal Open Market Committee (FOMC) gave the markets exactly what was expected this week – a hawkish pause of a 25 basis point cut. In plain English, that translates to a rate cut now with hints of slower and fewer cuts to come. The reaction to the third rate cut in three months was anything but expected. 

When it comes to measuring inflation, or any economic data for that matter, the expectation tends to be more important than reality. If the data is in line with what analysts expect, the real number – no matter how good or bad – loses its impact. This was the initial reaction in the case of November's inflation reports. Both the consumer and wholesale price indices came close to expectations but...

The addition of 227,000 jobs in November was a welcome relief after the unusually low, albeit upwardly revised, gain of 36,000 jobs in October. The three-month average of job additions amounts to 173,000 per month, a respectable pace for a sustainable labor market and strong enough for the Fed to feel more at ease with the labor market.