This post market episode focus on a significant announcement by Federal Reserve Chair Jerome Powell, who stated that an interest rate cut in December is not guaranteed, contradicting widespread expectations in financial markets. Before his statement, markets had factored in a roughly ninety percent chance of a December rate reduction, which plummeted to below sixty percent after his remarks. Powell emphasized that there are strongly different views among Fed officials regarding the future of interest rates, suggesting a division between those favoring lower rates to stimulate the economy and those preferring higher rates to combat inflation. His comments effectively upended market assumptions that the Fed would continue its rate-cutting campaign into December, creating uncertainty about the central bank's next move, particularly given the added complication of a government shutdown impacting crucial economic data.
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