Institutions: Fed expected to cut rates unanimously in December

On 16 December, Penson macroeconomists Samuel Thomas and Oliver Allen said that Fed officials are in a communication breakdown ahead of an upcoming policy decision this week, but that they are expected to unanimously decide to cut interest rates by 25 basis points. Fed Governor Waller said ahead of the meeting that he favoured a 25 basis point rate cut, the clearest policy comment from a committee member. Economists expect a pause in rate cuts to be the Fed's default option at its January meeting, given that inflation stubbornly remains above target.