Market has doubts about the Fed’s rate-cutting cycle

It was a busy week on the central bank front, with announcements from the Fed, BoJ and BoE. Despite the FOMC’s 25  bp cut, its cautious stance on future rate cuts is raising doubts about the Fed’s ability to continue its rate-cutting cycle. This instantly curbed risk appetite and led to a revaluation of the US bond yield curve, with the 10-year UST returning to its highest level for 6 months, and to a strengthening of the dollar. The markets, which are already paying close attention to labour market data, will now be paying equal attention to the forthcoming inflation figures. We wish our readers a very happy year-end holiday season. We’ll be back on 10 January for the first Market weekly news of 2025!