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Wall Street awaits the Federal Reserve's 'hawkish rate cut': a pause in easing in January and possibly three cuts next year?
① The industry generally expects the Federal Reserve to stage a "hawkish rate cut" this week; ② While cutting rates by 25 basis points in December, Fed policymakers may be preparing to taper the easing trend in 2025 in response to the anticipated inflation rebound following the Trump administration's assumption of office.
This week, the Federal Reserve's interest rate cut is nearly a done deal, but Powell may still strike a blow to the market.
This rate cut will be the Federal Reserve's third consecutive cut, and such a rapid pace of cuts cannot be sustained. Therefore, Powell must signal that a change will come next year, and how he conveys this message is crucial for the response of the deteriorating U.S. stock market.
Futu Morning Report | Goldman Sachs expects the Fed to "skip" interest rate cuts in January! Powell's speech may impact the market; Tesla surged over 6%, boosting the Nasdaq, and Quantum Concept stocks collectively exploded.
China's central bank has recently announced to appropriately reduce the reserve requirement ratio and interest rates. The State Council Meeting proposed to develop and strengthen long-term capital and patient capital; Bitcoin has surpassed 107,700 dollars, setting a new historical high, Ethereum has returned to 4,000 dollars, and most cryptocurrency concept stocks have risen.
The Federal Reserve's 'mouthpiece' has made a statement before the meeting: the Fed's strategy for interest rate cuts is constantly changing.
The "Fed's mouthpiece" stated in its latest article that the Federal Reserve is facing another potential turning point. After this week, officials are ready to slow down or even stop interest rate cuts.
U.S. stock market closing | The three major indexes had mixed results, with the Nasdaq increasing over 1% to reach a new high, while the Dow Jones fell for the eighth consecutive day; Broadcom surged over 11%, and Tesla rose over 6%, both reaching histori
The Dow Jones Industrial Average has recorded its longest losing streak since 2018; NVIDIA fell over 1%, marking its third consecutive decline; MicroStrategy, which was added to the Nasdaq 100 index, surged over 7% intraday before reversing to a loss, and Super Micro Computer, which was removed from the index, closed down over 8%. Chinese concept stocks fell over 2%.
Top economists: The Federal Reserve is facing a choice, and Powell may hint at pausing interest rate cuts in January next year!
Renowned economists indicate that in order to cope with inevitable decision points, the Federal Reserve must change its policy-making approach.