Hawkish FED Comments and Lack of Immediate Catalysts - Why We Stay Cautious
The Federal Reserve's decision to hold interest rates steady has been met with a hawkish tone, sparking fears of stagflation. While ETF inflows have rebounded, signaling renewed institutional confidence, the market decline shows no signs of a swift reversal. The absence of a clear short-term catalyst leaves investors in a holding pattern.
Market participants are weighing the Fed's stance against the backdrop of slowing declines. The lack of immediate triggers suggests a period of consolidation may be ahead. Institutional flows, however, hint at longer-term conviction beneath the surface volatility.