<h1>Investors bet on December Fed rate cut amid inflation worries, AI stock bubble risks, and lingering trade tariffs</h1> Global equity markets advanced as investors increased bets-now near 85 per cent-on a December interest rate cut by the US Federal Reserve, despite some officials warning inflation remains above the 2 per cent target. Anticipated wholesale inflation data could legally constrain the Fed's discretion to ease further if price growth accelerates. Market volatility reflects uncertainty over monetary policy direction and risks of a potential asset bubble in artificial-intelligence-related stocks. Earlier 'Liberation Day' tariffs imposed by a former US president continue to serve as a backdrop for trade and regulatory risk. Currency, oil, and cryptocurrency price movements underscore ongoing exposure to monetary, trade, and financial regulatory shifts.