According to Mars Finance, citing Jinshi, several Federal Reserve officials this week hinted at caution regarding a December rate cut, citing persistent inflation concerns. The market has revised its rate cut probability down to below 50%. Bob Savage, head of macro strategy at NYCB Markets, stated that there is a clear division within the Fed, and focusing on inflation is the right thing to do, as the inflation rate remains at 3%. George Cipolloni, portfolio manager at Mutual Asset Management, pointed out that while inflation is stubborn and the labor market is weak, there has been far from enough effort to cool inflation, leaving the Fed in a dilemma.
Analysts: The Federal Reserve is clearly divided on interest rate cuts; inflation is a concern.
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