Multiple Fed Officials Turn Dovish, December Rate Cut Odds Heat Up

November 21: During a period of nearly two hours, several Federal Reserve officials made dovish remarks collectively. Subsequently, U.S. short-term interest rate futures indicated an increase in market expectations of a December rate cut by the Federal Reserve. The likelihood of a December rate cut is now 54%. Fed Governor Milan: If my vote were a decisive one, I would vote in favor of a 25-basis-point rate cut. He believes that CPI data will be released after the next FOMC meeting. New York Fed President Williams: Given that the current policy stance is obviously tight, the Fed still has room to cut rates in the short term. The progress of inflation remains muted, but it is expected to reach the 2% target by 2027. Fed Vice Chair: AI-related stock gains are benefiting from actual earnings, which is different from the internet bubble period. Fed's Collins: Over time, further rate cuts are anticipated. Having a diverse perspective within the Fed is beneficial.