๐จ POWELLโS WARNING: โWE WILL ACT ONLY WHEN THE DATA IS CLEARโ โ NO PRESET COURSE ๐จ
Fed Chair Jerome Powell emphasised that the U.S. central bank is not on autopilot for a rate cut or hike โ every move will depend on incoming data, which is currently cloudy.
Why it matters:
Markets that assumed a certain December cut may be exposed to a surprise hold or even a hawkish pivot.
With policy uncertainty rising, volatility is likely to increase โ particularly in growth-sensitive sectors.
Bond yields and credit spreads may respond strongly if markets adjust to a slower-than-expected federal easing path.
Investor move:
Prepare for multiple scenarios: hold, cut, or pivot. Ensure liquidity, watch data releases (inflation, jobs), and shift exposure toward sectors less reliant on cheap money.