The Fed's 'pivot' brought market uncertainty to the forefront

Published On Dec 19, 2024, 3:12 PM

Recent market actions were driven by uncertainty following the Federal Reserve's message about cutting interest rates at a slower rate than previously anticipated. Fed Chair Jerome Powell indicated a shift in policy, raising doubts about the timing and pace of future rate cuts, creating a more cautious outlook. Despite this, some investors remain optimistic about stock performance, pointing to a resilient U.S. economy. Still, there is concern that this uncertain policy may lead to increased market volatility in 2025, as the Fed will be more data-dependent moving forward.