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Policymakers don’t expect to reach their 2% inflation goal until 2027, so “from here on out, it is going to be much harder to get rate cuts without much further improvement on inflation.”

However, officials reduced their expected number of rate cuts for next year from four to two.

In his first term, Trump bashed the Fed for allowing higher interest rates in the U.S. vs. Europe to drive up the dollar and hurt exports. Next year will likely bring more of the same, as the U.S. economy remains considerably stronger, meaning rates here will likely fall more slowly than in the Eurozone.

Nevertheless, the Fed may feel compelled to raise interest rates as soon as the first signs of a tariff-led bump in inflation emerge.

But the PPI components that feed into the Fed’s preferred inflation measure—the PCE price index—were favorable across the board in November.

The core CPI increased 0.3% for a fourth straight month, solidifying bets that the Fed will lower interest rates next week.

According to a T. Rowe Price portfolio manager, the spread between green bonds and non-green bonds from the same corporate is in the range of 0 bps to 1 bps, which isn’t “economically appealing for an issuer.” Sovereigns are getting about a 7 bps premium, on average.

The U.S. unemployment rate edged higher in October, to 4.2 percent, indicating cooling demand for workers.