#PowellRemarks
“In a surprising turn, Powell signalled that the odds of a December rate cut by the Federal Reserve have collapsed — what looked like a near-sure thing just weeks ago is now effectively a coin-flip.”
Markets reacted sharply: U.S. stocks slid, Treasury yields jumped, and the dollar flickered — all reflecting growing fears that policy is not easing anytime soon.
Powell emphasised that while the labour market is still solid, the risks of inflation remain elevated and the Fed must stand its ground: he basically told investors to stop counting on an automatic cut and brace for ambiguity.
Why it matters:
Investors who had priced in routine relief now face possible disappointment. The global ripple effect: Higher U.S. interest-rates = stronger dollar, tougher borrowing for emerging markets. It adds uncertainty into markets already jittery about inflation, global growth and policy direction.
#tags : #FederalReserve #JeromePowell #InterestRates #MarketShock #EconomyWatch #RateCutDoubt #InflationRisk #InvestingNews
