In October, the Fed cut the policy rate for a second consecutive meeting, by 25bp to 3.75-4%, but warned that a third cut at the December meeting is “not a forgone conclusion... far from it”. There are a group of officials who remain worried about tariffs lifting inflation further above the target amid scant evidence of a slowdown in the economy. However, there are others who are concerned that inflation fears are overdone and the focus should instead be on a rapid cooling of the jobs market, which could push inflation below target over the medium term. A case can be made for the Fed not needing to cut rates further ... (full story)