- Posted on December 16, 2024
- News
- By FC Team
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LONDON (Reuters) -The end of the year is almost in sight for traders, yet the last mile will be anything but slow.Central banks in the United States, Japan and Britain meet, while Germany holds a vote of no confidence in the government.Here's all you need to know about the coming week in world markets from Lewis (JO:LEWJ) Krauskopf in New York, Kevin Buckland in Tokyo and Naomi Rovnick, Amanda Cooper and Dhara Ranasinghe in London.1/ CUT, THEN WHAT?The U.S. Federal Reserve is expected to continue monetary easing with a 25 basis point (bps) rate cut on Wednesday, in what would be its third straight reduction, with the latest consumer price index rising in line with economists' estimates.Investors have curtailed expectations for how much the Fed will cut next year. Traders expect rates to fall to about 3.7% by end-2025 from the current 4.5%-4.75% range, roughly 90 basis points higher than what was priced in September.That puts the focus on the Fed's own rate projections and on any insight from Chair Jerome Powell about his expectations for future easing. Powell has said the economy is stronger now than the Fed had anticipated in September, and appeared to signal his support for a slower pace of rate cuts ahead.2/ HIKE ON HOLD?The pendulum of BOJ policy expectations has swung widely in the last two weeks, tying traders in knots.But as the Dec. 19 decision looms, the signal is becoming clearer - even if the outcome is still uncertain.investing.com