November 7, 2024 (Globalinvestorideas.com Newswire) Globalinvestorideas.com, a go-to platform for big investing ideas releases market commentary from Quasar Elizundia,Expert Research Strategist at Pepperstone.
“The Federal Reserve announced today a 25 basis point cut, placing the interest rate in a range of 4.5% to 4.75%, a move largely in line with market expectations. However, one of the standout aspects of the statement from the Federal Open Market Committee (FOMC) was the removal of the FED’s confidence in a sustainable inflation path toward the 2% target. This change in language reflects a more cautious stance, responding to an increasingly uncertain economic environment.
This adjustment heightens interest in the upcoming press conference by FED Chairman Jerome Powell, where clarity is expected on the challenges the institution might face due to potential changes in the trade and economic policies of the new Republican administration, led by President Donald Trump. These policies, which may include tariffs and a reduction in immigration, add complexity at a time when inflation remains resistant to disinflation in certain areas.
Following the FED’s November monetary policy decision, we are initially observing a moderation in the day’s retreat regarding prospects for future cuts beyond mid-2025. This supports the growing and recent notion that the FED could be nearing the end of its normalization cycle as soon as next year. As for the USD, the dollar initially responded positively to the FED’s decision, though it still faces downward pressure throughout the day.”
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