Analyst: The Fed may pause the rate cut process in early 2025 and ignoring inflation data may face liquidation risk.

Deep Tide TechFlow news, on December 13, according to Jin10’s report, Stephen Juneau, Chief Economist of the Bank of America, issued a warning in his latest report that investors ignoring inflation data may face liquidity risks in 2025. The latest data shows that the CPI in November rose by 2.7% year-on-year, with a monthly pump of 0.3%, an increase of 0.1 percentage points compared to October; the PPI in November rose by 0.4% month-on-month, significantly exceeding the market’s expected 0.2%.

Fed fund futures show a 98% probability of a 25 basis point rate cut by the Fed next week, but Rick Rieder, Global Fixed Income CIO of BlackRock, Greg Daco, Chief Economist at EY, and Oren Klachkin, Economist at Nationwide, all expect the Fed to pause its rate-cutting process in early 2025, influenced by potential new policies from Trump.

The market needs to be wary of three major risks: higher tariff policies, deficit financing tax reduction plans, and tightening immigration policies. These factors may lead to high core PCE inflation rate in the next two years. Daco particularly pointed out that although the possibility of interest rate cuts next week is close to a “coin toss probability”, the pace of subsequent interest rate cuts will clearly slow down, and policymakers will remain highly vigilant about the new government’s policies.