The apparent agreement between the US and China to avoid the December increase in tariffs and begin a phased rollback of existing tariffs, together with the more upbeat tone from the Fed, all but eliminates the prospect of a final rate cut in 2020. At the same time, however, Fed officials made clear this week that they will not resume raising interest rates until inflation picks up substantially. The November producer and consumer price figures suggest that prospect is further away than the Fed currently thinks.
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