U.S. stock index futures fell today after Federal Reserve Chair Jerome Powell gave a speech in Dallas that worried investors with unwelcomed news about rate cuts.
Powell’s speech on Economic Outlook was highly anticipated, due to increased bets that the Fed will stall rates at its December meeting. Powell said the economy has been remarkably good, “by far the best of any major economy in the world.”
According to Powell, “The economy has made significant progress toward our dual-mandate goals of maximum employment and stable prices.” He said the labor market remains in good condition and Inflation has eased substantially. “We are committed to maintaining our economy’s strength by returning inflation to our goal while supporting maximum employment.”
The Chair said he expects inflation to continue to come down toward the 2 percent objective. However, he was vague on when that would be.
He concluded his address by stating “The economy is not sending any signals that we need to be in a hurry to lower rates. The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully. Ultimately, the path of the policy rate will depend on how the incoming data and the economic outlook evolve.”
All U.S. stock indexes are set for weekly losses after markets calmed down after a second Donald Trump presidency was called.
By CEO NA Editorial Staff
