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

[Macroeconomic Outlook for Next Week: The Fed’s Highly Controversial Rate Cut Approaches, Gold Enters Volatile Mode] With U.S. economic data such as the “mini non-farm” and PCE largely supporting expectations for a Fed rate cut next week, Wall Street’s panic was both swift and fleeting, as investors returned to low-volatility, high-conviction bets on risk assets. The Fed’s interest rate decision will be the focal point next week, and after recent weak U.S. employment data, the market widely expects the Fed to lower rates. Here are the key events the market will focus on in the coming week: Tuesday 0:00, U.S. November New York Fed 1-year inflation expectations; Tuesday 23:00, U.S. October JOLTs job openings; Wednesday 3:00, FOMC releases its rate decision and Summary of Economic Projections; 3:30, Fed Chair Powell holds monetary policy press conference; Thursday 21:30, U.S. initial jobless claims for the week ending December 6, U.S. September trade balance; Friday 1:00, the Fed releases data on U.S. household financial health from the Q3 2025 Flow of Funds report; Friday 21:00, 2026 FOMC voter and Philadelphia Fed President Harker speaks on the economic outlook; 21:30, 2026 FOMC voter and Cleveland Fed President Mester speaks; Friday 23:35, Chicago Fed President Goolsbee participates in a moderator dialogue ahead of the Chicago Fed’s 39th Annual Economic Outlook Symposium. The Fed’s September dot plot suggests two rate cuts in 2026. In comparison, current market expectations are for 63 basis points of easing in 2026, indicating a higher probability of three rate cuts next year.