Fed's initial urge to cut rates disappears due to strong US economic data

From Investing.com: 2024-11-15 02:05:00

Federal Reserve’s (Fed) Jerome Powell initially cut interest rates by 50bp due to fears of deteriorating US jobs market, followed by an additional 25bp cut last week. Recent data shows US economy not signaling need for more rate cuts, causing Fed to reconsider December cut. US inflation rebounded to 2.6%, PPI data exceeded expectations, and initial jobless claims were lower than expected. Treasury yields around 4.35%, 10-year yield near 4.50%, USD overbought. Euro dipped below 1.05 against USD, supported by ECB rate cut expectations. Oil prices remain low, while Disney stock rose on strong Q3 results.

Overall, market volatility remains with fluctuations in interest rates, inflation data, and currency valuations. Eurozone and US economic data releases will continue to impact market trends. Oil prices remain low, while Disney stock rose on strong Q3 results. Powell’s comments on rate cuts caused market fluctuations, with Tesla facing challenges from potential elimination of EV tax credit. Market sentiment remains uncertain, with potential for dollar strength or weakness depending on upcoming economic data.



Read more at Investing.com: And Suddenly, Fed’s Urge to Cut Rates Evaporates