The FOMC are set to maintain the target range for the fed funds rate between 5.25% - 5.50% at the December meeting, extending the tightening cycle’s ‘pause’ to a third straight meeting, all-but-certainly implying that the terminal rate has been reached. With that in mind, and with the FOMC’s next move likely to be a cut at some point next year, the main talking points from the decision are likely to centre around any guidance tweaks that the Committee choose to make, along with the latest Summary of Economic Projections (SEP).

We explore the heart of financial markets and uncover essential trends through five crucial charts, shedding light on critical recent developments.

The final US labour market report of 2023 is upon us, with November’s release due on Friday. As traders continue to bet on an aggressive pace of policy easing from the FOMC next year, and consensus rapidly forms around the idea of a ‘soft landing’, market participants are likely to parse the data carefully for any signs of the labour market softening, though any longer-lasting policy implications of the report seem rather unlikely.