Powell Spooks Equity Markets | Episode 190 | 11-18-24

In this episode, Verdence CIO Megan Horneman breaks down last week’s market turbulence following comments from the Federal Reserve and new inflation data. After a period of post-election optimism, reality set in as Fed Chair Jerome Powell highlighted the challenges of persistent inflation and the uncertainty surrounding future interest rate cuts. Key economic indicators, including retail sales and housing costs, suggest a slowing consumer and elevated inflation, which could make the Fed cautious about easing monetary policy. Investors saw interest-rate-sensitive sectors, like small caps, take a hit, reflecting concerns about domestic growth prospects.

Looking ahead, the Fed’s next move hinges on upcoming data, including GDP, employment, and inflation reports. With market expectations adjusting, we predict a 25-basis-point rate cut in December, likely accompanied by a cautious tone. However, the path remains highly uncertain, with any surprises in the data capable of shifting the outlook. Stay tuned for our continued analysis as we track these critical developments. Don’t forget to subscribe to the podcast for updates and share it with anyone looking for deeper insights into the evolving economic landscape.

https://youtu.be/0uQQJuMd9Go

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