Powell 14th nov...speech15 Nov 2024 07:47
Nov 14 (Reuters) - Wall Street's main indexes closed lower on Thursday after Federal Reserve Chair Jerome Powell dampened investors' hopes for another interest rate cut this year by saying the U.S. central bank need not rush to ease monetary policy.
Powell said at a Dallas Fed event that with the economy still growing, the job market solid and inflation still above the 2% target, the Fed can deliberate carefully on rate cuts.While traders were still betting on a 25-basis point reduction at the Fed's December meeting, the probability fell to 62% from 76% earlier in the afternoon and from 82.5% on Wednesday, the CME FedWatch tool showed.
"The comments from Powell put more cold water on what used to be a very optimistic outlook on the path for rate cuts," said Adam Hetts, global head of Multi-Asset at Janus Henderson Investors.......