Analyst Megan Leonhardt said that despite the failure to make progress in curbing inflation in November, federal funds futures show an almost 100% chance that Fed policymakers will cut the base rate by another 25 basis points. The justification for a rate cut may depend on Fed officials wanting to keep the base rate in line with current economic conditions, as inflation has fallen sharply from its 2022 peak and a previously tight labor market is normalizing. But don't be surprised if next week's rate cut is accompanied by Powell's forward guidance, suggesting that the Fed will seek to pause rate cuts at the start of the year. Not only does the Fed have to keep inflation in its final stages, but many fiscal policy outcomes in the coming year could change the course of inflation. Moreover, there are indeed some areas of weakness in the labor market that deserve a closer look. All of this presents a directional challenge for the Fed in the coming months, and policymakers are likely to avoid acting at breakneck speed.