Macro Outlook for Next Week: The Fed’s Highly Controversial Rate Cut Approaches, Gold Enters Extreme Volatility Mode

PANews, December 6—As the “mini non-farm payrolls” and PCE, among other US economic data, largely support expectations that the Federal Reserve will cut rates next week, Wall Street’s panic came and went quickly, and investors have returned to making low-volatility, high-conviction bets on risk assets. The Federal Reserve’s interest rate decision will be the focus next week. Following recent weak US employment data, markets widely expect the Fed to cut rates. Here are the key points the market will be watching in the week ahead:

Tuesday 0:00, US November New York Fed 1-Year Inflation Expectations; Tuesday 23:00, US October JOLTs Job Openings; Wednesday 3:00, Federal Reserve FOMC releases rate decision and Summary of Economic Projections; 3:30, Fed Chair Powell holds monetary policy press conference; Thursday 21:30, US Initial Jobless Claims for the week ending December 6, US September Trade Balance; Friday 1:00, Federal Reserve releases US household financial health data from the 2025 Q3 Flow of Funds report; Friday 21:00, 2026 FOMC voting member, Philadelphia Fed President Harker, gives a speech on the economic outlook; 21:30, 2026 FOMC voting member, Cleveland Fed President Mester, gives a speech; Friday 23:35, Chicago Fed President Goolsbee participates in a fireside chat ahead of the Chicago Fed’s 39th annual Economic Outlook Symposium.

The Fed’s September dot plot suggested two rate cuts in 2026. In contrast, the market currently expects 63 basis points of easing in 2026, implying a higher possibility of three rate cuts next year.