Here's what changed in the new Fed statement

Published On Dec 18, 2024, 2:07 PM

The Federal Reserve's December 2024 statement has introduced specific changes compared to the previous month's statement. Key differences include language adjustments related to interest rates and economic outlooks based on the current financial landscape. The Fed seems to indicate a more cautious approach towards monetary policy shifts, possibly reflecting concerns about inflation and economic stability. These revisions suggest a careful balancing act that the Fed is maintaining between stimulating growth and preventing overheating in the economy.

Stock Forecasts

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Given the Fed's cautious tone and adjustments in their policy statements, it hints at a stable interest rate environment which may support equities and potentially benefit sectors sensitive to interest rate changes like real estate and utilities.

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Canada's ambassador to the United States said Sunday that Prime Minister Justin Trudeau was successful in getting President-elect Donald Trump and key Cabinet nominees to understand that lumping Canada in with Mexico over the flow of drugs and migrants into the U.S. is unfair. Kirsten Hillman, Canada's ambassador in Washington, told The Associated Press in an interview that Trudeau's dinner with Trump on Friday was a very important step in trying to get Trump to back away from threatened tariffs on all products from the major American trading partner.

While the president-elect says he will impose a 25 percent tariff on everything Canada exports, Trudeau remains confident about forestalling that outcome.