November CPI report to be critical for Fed policy as markets only predict 24% chance of a 4th Fed rate cut. Economists expect headline CPI to rise from 3.0% to 3.1% year over year.

The latest Consumer Price Index (CPI) report for November is being closely watched by investors, given the current cautious market sentiment regarding potential Federal Reserve actions. With only a 24% probability priced in for a fourth consecutive rate cut by the Fed in January, following Chair Jerome Powell's recent comments about the central bank's readiness to monitor economic developments, the inflation data from November holds significant importance for upcoming Fed decisions. Due to the impact of the recent government shutdown on data releases, investors are relying on two-month averages or year-over-year comparisons instead of the usual one-month changes in the CPI figures. Economist forecasts compiled by TradingEconomics anticipate a slight increase in headline CPI from 3.0% to 3.1% year-over-year, while core inflation is expected to remain stable at 3.0%. The full article can be accessed on Benzinga.com.