Weekly Market Update: December 13, 2024

Inflation Steadies, Fed Rate Cut Looms

How stable inflation could pave the way for rate cuts- and what it means for you.

Join me in our ‘Weekly Market Update’ to decipher what to expect in the coming weeks & months.

Happy Friday! Brian Manning here with the weekly update. Let’s get right to it!

There’s really not a lot of news to talk about this week except for CPI, the Consumer Price Index. This is one of the gauges of inflation. There are two gauges of inflation, the CPI and PCE (Personal Consumption Expenditure). The PCE is the Federal Reserve’s favorite gauge for measuring inflation. That one comes out in a couple of weeks, so the CPI is what we are working with right now.

When the CPI came out this week, it showed that inflation was relatively unchanged, and it was very much in line with market expectations. This also likely gives the green light for the Federal Reserve to cut rates by a quarter percent in their upcoming meeting here in a few days. I’m really excited to see that. I think we need more easing of the monetary policy. Most Federal Reserve members have said for a while now that they think the monetary policy is too restrictive. I’m not sure what’s going to happen as we move into 2025. We’re just going to have to wait and see what happens there, but I can tell you we will likely see a Fed rate cut here in December based on the CPI reading that we have.

I’m not sure that we’re going to see a lot of meaningful moves with inflation anytime soon. However, I do believe when we get January’s report, which will come out in February, we’re going to see more meaningful moves as far as inflation is concerned. So for right now, it was good to see that this was in line with expectations leading to a likely Fed rate cut.

That’s really the only big news for the week.

I’m around a weekend if you have any questions. My availability is seven days a week from 8 am to 8 pm. If you want to run payments, or get pre-approved, give me a call anytime.

Realtors, I’m super excited because we have some amazing upcoming classes coming up. Please RSVP as soon as possible because seats will fill up quickly. I’m ridiculously excited to have this new content that we’re getting ready to start putting out there.

Happy Friday. I hope everybody has a great day.

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