Inflation Gives Fed Green Light for Rate Cut in December

  • Markets raise bets policymakers will lower rates next week
  • Officials expected to dial back projected cuts for next year
The Marriner S. Eccles Federal Reserve building in Washington, DC.Photographer: Stefani Reynolds/Bloomberg
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Fresh inflation figures are likely to make the Federal Reserve more cautious about the pace of interest-rate cuts — but not quite yet.

Investors still widely expect the US central bank to cut borrowing costs by a quarter percentage point next week after a new report showed inflation rose in November in line with expectations. But persistent price pressures have also underscored concerns that progress toward the US central bank’s 2% target may be stalling.