That’s because the Federal Reserve will release the minutes from its latest meeting at 2pm ET, which could provide more clues about the central bank’s thinking on inflation and interest rate hikes. At its November 2 meeting the Fed raised rates by three-quarters of a percentage point — its fourth straight hike of such a large magnitude. But Fed chair Jerome Powell suggested at a press conference that the Fed may soon begin to slow the pace of hikes.
A recent batch of inflation reports seem to suggest that the pace of runaway price increases is finally starting to slow to more manageable levels. The job market remains relatively healthy as well, although the most recent jobless claims figures ticked up from a week ago. But as long as the labor market remains firm and inflation pressures continue to ebb, the Fed will likely pull back on the magnitude of its rate hikes.
Jerome Powell was one of the few positive legacies from the Trump admin. The man knows what he is doing!