Macquarie Group economists expect the Federal Reserve to ease monetary policy starting in December, rather than in Quarter 1 2025, thanks to the recent drop in inflation. "The breadth indicator shows a significant improvement, which is conducive to lower inflation," economist David Doyle wrote on Tuesday of the May CPI report. "This improvement, combined with more mixed signals in the labour market, has prompted us to bring forward our base case for FOMC easing". Macquarie now expects a 25 basis point rate cut in the fourth quarter, December to be exact; previously expected in Quarter 1 2025.