Rate-Cut Decision Was Narrow, Fed Minutes Show
Published On Jan 8, 2025, 3:36 PM
The Federal Reserve cut interest rates last month but signals from their December meeting indicate that future cuts are uncertain. There are concerns among policymakers about rising inflation and the effectiveness of current interest rates in slowing the economy. President-elect Donald Trump's potential economic policies, particularly regarding trade and immigration, could influence inflation and growth rates. Some Fed officials believe that while tariffs may not have a lasting adverse effect on inflation, they will wait to see how Trump's policies unfold before making further rate decisions.
Stock Forecasts
XLF
Negative
Given the uncertainty surrounding future rate cuts and the potential for rising inflation influenced by proposed economic policies, the overall sentiment in the market suggests cautiousness around investments in sectors sensitive to monetary policy changes.
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