Expectations for rate cuts in 2025 rise as Fed favours indicators showing slowing price pressures

Dec 20 (Reuters) - The Federal Reserve's favoured inflation gauge showed a moderate performance in November, a step in the right direction for policymakers seeking further rate cuts in 2025. The data should help ease Fed officials' concerns about the inflation outlook. Fed officials released updated projections this week that show prices and interest rates will be higher in 2025. These new projections triggered a sell-off in U.S. stocks as investors have digested expectations for tighter policy. Details on prices point to a general inflation slowdown. Core service prices (a closely watched category that excludes housing and energy) rose 0.2 per cent on a year-over-year basis, the lowest level since August. Core goods prices (excluding food and energy) fell for the first time in three months.