^{16 December 2024} The Week Ahead: Fed to cut rates by 25 bps; BoE to keep rates steady

We expect the FOMC to cut the FFTR (upper bound) by 25 bps to 4.50% on Wednesday, albeit signalling a more gradual pace of rate cuts thereafter. We see this stance as supported by the ongoing labour market loosening, with unemployment ticking up to 4.25% in November, and the moderation in average monthly job creation to 173K in the last 3M (from November) and 143K in the last 6M.

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