Wall Street reevaluates 'higher for longer' rates post Fed meeting: What to know this week
Published On Dec 22, 2024, 7:45 AM
Following the latest Federal Reserve meeting, Wall Street is adjusting its expectations regarding interest rates, particularly with the Fed hinting at a 'higher for longer' policy amidst concerns about persistent inflation. The markets showed some signs of recovery after a tough week, with the Fed signaling fewer rate cuts than previously anticipated for the following year. This environment creates a cautious sentiment on Wall Street as investors prepare for potential inflationary pressures and related policy changes.
Stock Forecasts
SPY
Negative
The equity markets remain sensitive to interest rate changes. With the Fed signaling less aggressive rate cuts, sectors reliant on borrowing may face downward pressure. However, infrastructure and construction sectors might benefit from steady interest due to ongoing projects.
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