FED Cuts By 25 Basis Points And Removes Reference To Confidence In A Sustainable Reduction Of Inflation


(MENAFN- Investor Ideas) Investorideas ( ), 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."

About Investorideas - Big Investing Ideas

Investorideas is the go-to platform for big investing ideas. From breaking stock news to top-rated investing podcasts, we cover it all. Our original branded content includes podcasts such as Exploring Mining, Cleantech, Crypto Corner, Cannabis News, and the AI Eye. We also create free investor stock directories for sectors including mining, crypto, renewable energy, gaming, biotech, tech, sports and more. Public companies within the sectors we cover can use our news publishing and content creation services to help tell their story to interested investors. Paid content is always disclosed.

Disclaimer/Disclosure: Investorideas is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Contact management and IR of each company directly regarding specific questions. More disclaimer info: More disclaimer and disclosure info Learn more about publishing your news release and our other news services on the Investorideas newswire /News-Upload/ Global investors must adhere to regulations of each country.

MENAFN07112024000142011025ID1108862995


Investor Ideas

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.