Is the Federal Reserve turning hawkish? Morgan Stanley: I have seen this episode!

Morgan Stanley stated that the timing and magnitude of interest rate cuts depend on the implementation progress of the restrictive policies of the new Trump administration. However, the impact of these policies on economic activity may also be delayed. Therefore, while the Federal Reserve is currently hawkish, it may turn dovish later.

wallstreetcnDec 21 17:41

Why did the U.S. stock market rebound significantly? It comes from the key statements of this dovish Federal Reserve member.

Previously, he hinted that there might be a slowdown in the pace of interest rate cuts in 2024, which once sparked a reduction in market expectations for interest rate cuts next year. After seeing the latest inflation data, his recent remarks reaffirmed support for interest rate cuts, which undoubtedly provided a boost to the market.

wallstreetcnDec 21 15:40

Dominant market "narrative": Powell VS Trump.

After the Federal Reserve announced its interest rate decision, the U.S. stock market nearly erased all the gains since Election Day, reflecting a divergence in market narratives: last month's surging "Trump narrative" has cooled down, while the Federal Reserve's "hawkish" stance has shifted market focus back to inflation factors.

wallstreetcnDec 21 14:27

The "farce" of the USA government shutdown crisis is over! The Senate has passed a stopgap spending bill.

The bill ensures that the USA federal government continues to receive operational funding, extending the funding period from this Friday night to mid-March next year.

cls.cnDec 21 14:22

38 Republican "traitors", the USA government nearly faced a shutdown, was Trump's "strong stance" exposed?

Analysis suggests that this event indicates that Trump, who seems to have "consolidated power" and appears politically stable, now faces an uncertain future. Trump's Republican colleagues, 38 Republican representatives in the House, opposed his call to "suspend or eliminate the debt ceiling," which almost led to a government shutdown.

wallstreetcnDec 21 12:40

The only official who voted against the rate cut at the Federal Reserve's December meeting explains why they do not support the rate cut.

Federal Reserve Chair Hammack indicated that based on her determination that monetary policy is currently close to a neutral stance, she tends to keep policy stable until more evidence shows that inflation is returning to the target path of 2%. The momentum of the USA economy and the recent high inflation data prompted her to raise the inflation forecast for next year. She believes her decision is a tough choice.

wallstreetcnDec 21 12:33