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Week Ahead – Blockbuster end to the year

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US

Wall Street will be watching two major events as Wall Street is worried that the disinflation trade might have gotten ahead. The November inflation report will be the final piece of economic news prior to the Fed meeting. It is expected that it will show pricing pressures decreasing.  The headline reading from one month ago is expected rise by 0.3%. This is just a tad lower than the October pace.  Inflation is expected to fall from 7.7% to 7.3% over the past year. While there are still many things to do to bring down inflation, for the moment, the trend appears to be heading in the right direction. 

The FOMC decision will be “Must See TV” as the Fed is expected to downshift to a half-point rate-hiking pace and yet still reiterate that they are not done raising rates.  The Fed is expected to show that rates can rise anywhere from 4.75-5.25 percent, which should prompt a more rapid cooling of the labor force.  

EU 

The ECB meeting next week promises to be a defining moment in the bloc’s fight against inflation. Although it was late, it was very late, but it soon caught up and culminated in a 75-basis point rate increase last week. It is believed that it…



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