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Bloomberg.com reports US yields spike as Powell downplays December cut
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Heartspace News Desk
•Source: Bloomberg.com
Photo by Justin Ortega on Unsplash
TL;DR
The Federal Reserve's recent rate cut, accompanied by Chairman Powell's caution against expecting further cuts in 2025, led to market turbulence. Wall Street responded to the apparent disagreement within the Fed by increasing bond yields and decreasing prior expectations of a December rate cut.
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Key takeaways
- Wall Street reacted sharply to apparent divisions within the Federal Reserve regarding future monetary policy, causing volatility in stock markets and pushing bond yields upward
- While the Fed implemented a widely expected rate cut, Chairman Jerome Powell cautioned against anticipating further rate reductions in 2025
- This statement tempered expectations within financial markets, prompting traders to scale back their predictions of a quarter-point rate cut in December
Wall Street reacted sharply to apparent divisions within the Federal Reserve regarding future monetary policy, causing volatility in stock markets and pushing bond yields upward. While the Fed implemented a widely expected rate cut, Chairman Jerome Powell cautioned against anticipating further rate reductions in 2025. This statement tempered expectations within financial markets, prompting traders to scale back their predictions of a quarter-point rate cut in December.
Related Topics
Federal Reservemonetary policybond yieldsstocksfinancial markets
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