Fed Slashes Rates: Powell’s Hawkish Tone Meets Market Expectations
The Federal Reserve's rate cut decision dominated financial markets, with seven members opposing further reductions in 2024. Chair Jerome Powell's subsequent speech reinforced expectations of cautious monetary policy, emphasizing stable economic indicators and a cooling labor market.
Analysts remain divided on future moves. JPMorgan anticipated Powell's hawkish stance, while Deutsche Bank suggested additional cuts might follow. The dissent of two voting members, including Chicago Fed President Goolsbee, underscores lingering policy disagreements.
Powell's remarks highlighted unchanged economic conditions since the last meeting, with particular focus on inflation control through restrained balance sheet adjustments. Markets now await clearer signals about the Fed's long-term strategy for navigating potential economic headwinds.
