US stock market falls as expectations for interest rate cuts this year diminish following comments from the Federal Reserve Chairman.
November 15, 2024, 6:18 AM GMT+9 (excerpt)
The U.S. stock market closed lower. Expectations for additional year-end rate cuts receded as Federal Reserve Chairman Powell indicated that there is no need to rush rate cuts.
Chairman Powell stated in his speech that the economic situation is 'extremely good', the labor market conditions are solid, and the inflation rate has not yet reached the target of 2%, indicating that the Fed can carefully consider the decision to cut interest rates.
According to CME's FedWatch, the market continues to anticipate a 25 basis point (bp) rate cut at the December Federal Open Market Committee (FOMC) meeting, but the probability has decreased to 55.5%. Before the speech, it was 76%, and the day before it was 82.5%.
Adam Hetts, Global Head of Multi-Asset at Janus Henderson Investors, stated that Chairman Powell's remarks 'poured cold water on the previously very optimistic expectations of a rate cut.'
Chairman Powell stated in his speech that the economic situation is 'extremely good', the labor market conditions are solid, and the inflation rate has not yet reached the target of 2%, indicating that the Fed can carefully consider the decision to cut interest rates.
According to CME's FedWatch, the market continues to anticipate a 25 basis point (bp) rate cut at the December Federal Open Market Committee (FOMC) meeting, but the probability has decreased to 55.5%. Before the speech, it was 76%, and the day before it was 82.5%.
Adam Hetts, Global Head of Multi-Asset at Janus Henderson Investors, stated that Chairman Powell's remarks 'poured cold water on the previously very optimistic expectations of a rate cut.'
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