Wall Street finally got his long -awaited pieces to The basis price yesterday With the head of the Federal Reserve, Jerome Powell, he confirms attention by 25 bits per second. So this morning the markets celebrate, right?
mistake.
The context of Powell did not come with the footnotes of the analysts who want to see it. Ideally, the FOOC Open Market Committee (FOMC) is reduced because it is on the right path to re -inflation to its goal of 2 %, or because the economy is healthy enough so that it can withstand the increase in activity – a signal with greater prosperity.
What the spectators do not want to see is to reduce anxiety about the delegation of the FBI: stable prices and the maximum employment. Powell described FOMC’s decision as the last, which is the “risk management” that fear stimulates instead of confidence.
No side of the federal reserve delegation does not seem to be in perfect healthy condition. President Powell explained at his conference, on the work side: “In general, the remarkable slowdown in both supply and demand for workers is unusual. In this less dynamic and more softer market, it seems that the negative risks facing employment have increased.”
Meanwhile, “inflation dramatically from its highest level in mid -2012, but it is still somewhat high for our 2 % longer goal.”
As such, “the markets left a less confident feeling of the possibility Mitigation Jim Reed from Deutsche Bank Jim Reed wrote to clients this morning, and the treasury revenues were higher through the curve by closing with American stocks.
What also sparked eyebrows for investors was the Federal Reserve Point plot The tight shift from an indicator of 50 -bit per second in 2025 to 75 -bit per second, indicating that in one of the final meeting this year, 50 bits can be announced.
But until then, the Powell Powell poured into any confirmed plans, saying that FOMC was still “setting a meeting separately.” This caught the attention of Elyse Ausenbau, head of the investment strategy at JPor Wealth Management, who was written in a note seen by luck The transformations in the DOT conspiracy were “interesting”, adding: “Powell also admitted this, but the amount of dispersion reflects uncertainty and the risks of two directions in the macro environment in 2025. I think (yesterday) a good function by the federal reserve in terms of connecting a time with caution, not panic.”
Miran First FOMC
It was also worth noting the individual opposition from the majority. This came from Stephen Miran, the last appointment of Trump to the committee and a consultant to the White House. Due to the pressure of the president and his cabinet minister due to a lower basic rate since his victory in the White House, it may not have been a surprise that Miran was defending a 50 -bit reduction.
However, this can be a sign of the coming things. After all, President Trump said when Powell’s term ended next year, and he will be replaced by a much more candidate.
This was a reminder from Joe Prussuelaas, the chief economist in RSM, who warned, “We urge everyone to take these expectations with more than a grain of salt, and it will strongly indicate that the federal reserve is moving in a direction in which it does not tolerate inflation higher than the goal.
This tension– And friction in the state of the Federal Reserve – returns to its eye on a rugged road forward. Michael Pierce of Economist Oxford, Vice President of US Economists, confirmed that the federal reserve expectations are still excessively pessimistic, and thus believes “a slower pace of mitigation” in the upcoming meetings.
“Our expectations are to come 25 byte in the next hour in December,” Pierce added. “However, given the deep gap in the committee, the Federal Reserve will be sensitive to any additional negative surprises in the incoming labor market data.”
As news digestion markets this morning, the reaction was kept. The S& P 500 was flat yesterday, Nasdak Lower 0.33 % marginal and Russell 2000, an increase of 0.18 %. S & P Futures Up Moving this morning, Premarket.
Europe was awake this morning, with FTSE 100, CAC 40, Stoxx 50 and DAX all the small gains, while in Asia Nikkei 225 and NIFTY 50 was while SSE Hang Ping was slightly more than 1 % for each of them.
Here is a snapshot of markets worldwide this morning:
- S & P 500 futures contracts An increase of 0.86 % this morning. The index closed 0.09 % at its last session.
- Stoxx Europe 600 It increased by 0.89 % in early trading.
- FTSE 100 in the United Kingdom The increase of 0.36 % was in early trading.
- Japan Nikki 225 It was 1.15 %.
- China CSI 300 1.16 % decreased.
- South Korea Cuban It was 1.4 %.
- Elegant India 50 It was flat before the end of the session.
- Bitcoin It rose to 117.3 thousand dollars.
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