Fed gives Santa a green light to rally

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A week marked by caution and muted fund flows ended with a burst of enthusiasm triggered by the US Federal Reserve’s acknowledgment of progress in the battle to curb inflation and a new ‘dot plot’ suggesting next year will see three interest rate cuts. A net $24 billion flowed into EPFR-tracked US Equity Funds on the final day of the reporting period – the biggest daily total in a year – while US Money Market Funds ended the week with their biggest daily outflow since Oct. 12.

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