Weekly Talking Points for Financial Advisors (11/11/24)

Read the highlights of this week's commentary from Helios:

• The Federal Reserve continued its rate-cut cycle with a quarter percentage point reduction to 4.5%-4.75%, the lowest level since March 2023, and is widely expected to do so again at its last meeting of the year on Dec. 18. Following the presidential election, markets anticipate fewer rate cuts in 2025, with some banks revising their forecasts to align with expectations for policies that could boost growth and inflation.
• US consumer sentiment rose to a seven-month high in November, with optimism about economic prospects and personal finances driving the index up to 73, surpassing most forecasts. Consumers expect inflation to slow to 2.6% over the next year, the lowest since 2020, although 5-10-year inflation expectations inched up to 3.1% from 3.0%.
• The US services sector expanded in October at its fastest pace in over two years, with the ISM services index rising to 56. Strong hiring, along with gains in new orders and business activity, signaled continued economic momentum heading into the fourth quarter.

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