WASHINGTON: With inflation figures aligning with market expectations, the likelihood of a 25-basis-point rate cut at the Federal Reserve's upcoming December meeting is increasing. According to Anadolu Agency, headline annual inflation rose to 2.7% in November from October's 2.6%, while core inflation, which excludes volatile food and energy prices, held steady at 3.3%. Both headline and core inflation saw a monthly increase of 0.3%, consistent with forecasts. Ryan Sweet, chief U.S. economist at Oxford Economics, emphasized consumer resilience in facing inflationary pressures, particularly in discretionary spending sectors such as motor vehicles, hotel lodging, and airfares. Sweet noted a disinflationary trend in more persistent inflation components, such as shelter, suggesting that inflation is unlikely to surge again, even amid concerns of future waves. He anticipates a Federal Reserve rate cut in December, followed by a pause in January, despite potential challenges from seasonal inflation spikes and tari ff-related pressures. Sweet expects three additional 25-basis-point rate cuts next year. Padhraic Garvey, head of research for the Americas at ING, observed easing inflation in sectors like housing and education, although vehicle prices continued to rise. He projected a 0.2% increase in the core personal consumption expenditures deflator, a key Fed measure, and concurred with a December rate cut, predicting a more cautious Fed approach in 2025. Max Gillman, an economic history professor at the University of Missouri, highlighted the Fed's high interest rate on reserve balances, adjusted for inflation. He echoed expectations for a December rate cut, noting positive market responses to November's inflation data and the uncertainty as the Fed navigates economic trends. Despite the optimism, Steven Kamin, a senior fellow at the American Enterprise Institute, expressed concern over persistent inflation, with core inflation remaining at 3.3%, above the Fed's 2% target. Kamin linked this to strong wage growth and preferred maintaining current rates, though he anticipated a 0.25 percentage point cut. Satyam Panday, chief U.S. economist at S and P Global Ratings, warned against complacency in inflation management. While expecting a December rate cut, he noted that services inflation remains sticky and core goods inflation is diminishing. Panday predicted a pause in rate cuts after December, with a more cautious approach in 2025.