Synopsis:

CIBC notes that the November FOMC meeting delivered the expected 25bps rate cut, with minor adjustments to the statement. The Fed removed language indicating "greater confidence" in inflation reaching target, aligning with today’s smaller rate cut. The statement retained the view of balanced risks, acknowledging recent election-related uncertainties and mixed economic data.

Key Points:

• Expected Rate Cut: The Fed reduced the funds rate by 25bps, as anticipated, with no major changes in the meeting outcome.
• Statement Adjustments: The FOMC omitted its previous "greater confidence" language on inflation, consistent with a more cautious approach following September's larger rate move.
• Economic and Market Uncertainties: Since September, election results and recent data have added economic uncertainty, while GDP revisions indicate a stronger underlying growth trend and a gradually cooling labor market.

Conclusion:

CIBC describes the November FOMC as straightforward, with the Fed maintaining its balanced view of risks and responding to evolving economic conditions with a modest rate cut. The statement’s tone reflects caution amid recent uncertainties, yet it leaves the door open for further adjustments based on upcoming data.