Powell holds interest rates — and his ground: Morning Brief
Published On Jan 30, 2025, 5:58 AM
Fed Chair Jerome Powell decided to keep interest rates steady at 4.25% to 4.50%, despite political pressure for a cut from President Trump. Powell maintained a neutral stance regarding Trump's tariff threats and emphasized a cautious, data-driven approach to monetary policy. Analysts suggest that without significant movement towards rate cuts, inflation may rebound, potentially halting cuts in 2025.
Stock Forecasts
SPY
Positive
The stability in interest rates combined with Powell's cautious approach suggests a positive outlook for growth-focused sectors, particularly those sensitive to interest rates, such as technology. However, sectors exposed to tariffs or economic downturns could face pressure.
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