Speaking in front of the Economic Club of Chicago, Powell said that the Fed is well-positioned to “wait for greater clarity” before deciding on interest rate changes. 

“For the time being, we are well-positioned to wait for greater clarity before considering any adjustments to our policy stance,” Powell stated.

The two main goals of the Fed are to keep the prices stable while maximizing employment. It makes changes to its policy based on which goal it needs to achieve. However, the tariffs could jeopardize both goals at the same time, causing inflation to surge while slowing economic growth.

“We may find ourselves in the challenging scenario in which our dual-mandate goals are in tension,” Powell added. “If that were to occur, we would consider how far the economy is from each goal, and the potentially different time horizons over which those respective gaps would be anticipated to close.”

The markets didn’t react positively to Powell’s remarks. The benchmarks S&P 500 slid by 120.93 points or 2.24% while tech-heavy Nasdaq Composite lost 516.01 points or 3.07%. The blue-chip Dow Jones Industrial Average went down by 700 points or 1.73%.

The post Fed to “Wait for Greater Clarity” Before Making Policy Adjustment Says Chair Jerome Powell appeared first on theprimarymarket.com.

The Fed’s benchmark borrowing rate is currently set at 4.25% to 4.5%, remaining unchanged since January. The future rate cuts are expected to amount to half a percentage point, bringing the rate to 3.75% to 4% range for the first time since November 2022.

The officials also shared their views on economic growth and inflation in the wake of recent tariff policy changes. They now expect slower economic growth and expect inflation to spike up to 2.7% compared to the current level of 2.5%.

Speaking at a press conference after the meeting, Federal Reserve Chair Jerome Powell indicated that the Fed’s stance on rates will continue to be based on the economic indicators.  

“If the economy remains strong, and inflation does not continue to move sustainably toward 2%, we can maintain policy restraint for longer,” Powell said. “If the labor market were to weaken unexpectedly, or inflation were to fall more quickly than anticipated, we can ease policy accordingly.”

The stock market reacted positively to the news, with Dow Jones Industrial Average futures jumping by 0.2%. S&P 500 futures ticked up by 0.3% as did futures attached to Nasdaq Composite.

The post Federal Reserve Keeps Interest Rates Intact, But Still Predicts Two Cuts in 2025 appeared first on theprimarymarket.com.

The S&P 500 closed at a record 6,129.58 points on Tuesday before improving by another 14.57 points or 0.24% on Wednesday for a 6,144.15 close. The index also cleared its intra-day record, reaching 6,146.80 at one point.

Nasdaq soared to 20,097.73 in the afternoon before sliding to a modest gain of 14.99 points or 0.07% to close at 20,056.25. Dow Jones jumped by 71.25 or 0.16% to end the day at 44,627.59 points.

Investors are still waiting to see the full impact of the new tariff regulation that includes a 25% tariff on imports of steel and aluminum into the United States. Additionally, the new administration announced a reciprocal tariffs policy that could become effective in April.

Additionally, the markets are digesting the minutes from the Fed’s January meeting, which were released on Wednesday. According to the release, Federal Open Market Committee officials are waiting for “further progress on inflation” before thinking about adjusting interest rates.

“Many participants noted that the Committee could hold the policy rate at a restrictive level if the economy remained strong and inflation remained elevated, while several remarked that policy could be eased if labor market conditions deteriorated, economic activity faltered, or inflation returned to 2 percent more quickly than anticipated,” the released noted.

The post S&P 500 Closes At All-Time High for Second Straight Day, Nasdaq and Dow Jones Also Record Gains appeared first on theprimarymarket.com.

The Federal Open Market Committee (FOMC) unanimously voted to pause further rate cuts at the conclusion of its two-day meeting in Washington, D.C. The move was somewhat expected, as policymakers previously indicated the intention to take a patient approach to interest rate changes in 2025.

In a statement released following the meeting, FOMC said that the economic activity in the country continued to expand “solid pace,” while adding that the unemployment rate remains at a low level and that the labor market conditions are “solid.” It also described the inflation as “somewhat elevated.”

“The Committee seeks to achieve maximum employment and inflation at the rate of 2% over the longer run,” FOMC noted. “In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks.”

Additionally, Fed chair Jerome Powell said that the U.S. central bank will have to see “real progress on inflation or some weakness in the labor market” before considering further rate adjustments.

The Fed’s decision to keep the interest rates unchanged caused a brief slide in the stock market that was diminished in the following hours. Benchmark S&P 500 was down by 0.72% at one point before closing down by 24.57 points or 0.41%.

The post Fed Unanimously Decides to Keep Its Interest Rates Intact appeared first on theprimarymarket.com.

The CPI increased by 0.4% on a seasonally adjusted basis in the last month of 2024 compared to a 0.3% jump in November while putting the 12-month inflation at 2.9%. Economists predicted a 0.3% jump and 12-month inflation of 2.9%.

However, the core CPI, which excludes volatile prices of food and gas and is the Federal Reserve’s preferred measure of inflation, has been favorable and came below expectations. It saw a jump of 0.2% and came at an annual rate of 3.2%, while economists expected a 0.3% increase and an annual rate of 3.3%.

The CPI report had a positive effect on the stock market, which rebounded following a sluggish start of the week. Benchmark S&P 500 improved by 107 points or 1.83% to close at 5,949.91, blue-chip Dow Jones Industrial Average experienced 703.27 points or 1.65% to close at 43,221.55, while the tech-heavy Nasdaq soared by 2.45% or 466.84  for a 19,511.23 points close. 

Experts believe that the CPI numbers won’t change the Fed’s intention to pause with rate cuts but should calm any concerns about interest rates going up.

“Today’s CPI may help the Fed feel a little more dovish. It won’t change expectations for a pause later this month, but it should curb some of the talk about the Fed potentially raising rates,” Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management, told CNBC. “And judging by the market’s initial response, investors appeared to feel a sense of relief after a few months of stickier inflation readings.”

The post Consumer Price Index Rises in December, But Shows Encouraging Trend appeared first on theprimarymarket.com.

In a recent interview with Bloomberg News, Collins said that she believes the latest employment data and lingering inflation call will result in fewer rate cuts than previously expected.

“Over time, it will be appropriate for some more easing, but perhaps somewhat less than I might have thought back in September,” Collins said. “Taking the time to really patiently assess the data holistically — to be analytic and patient — seems to me very likely to be appropriate as we think about policy going into 2025.”

Collins explained that the Fed officials might adopt a faster pace in case inflation shows further signs of cooling down. But if the data is inconclusive, the Fed will likely elect to stand pat.

However, she is optimistic about the labor market, where the data is more favorable.

 “On the labor market side, there were more concerns for me earlier about potential fragilities. Those concerns have eased,” she added.

The Fed slashed its benchmark rate to 4.25% to 4.5% during its December meeting. At the time, the officials said they would wait to see further improvement in inflation data before making their next move. Additionally, they forecasted just two rate cuts in 2025 compared to projections of four rate cuts from the September meeting.

The post Boston Fed President Susan Collins Supports Fewer Rate Cuts in 2025 appeared first on theprimarymarket.com.

This was the Fed’s third consecutive rate cut in 2024 and brought the benchmark interest rate to a range of 4.25% to 4.5%. The Federal Open Market Committee made the cut with a split vote with Cleveland Fed president Beth Hammack objecting to the decision.

Hammack’s objection was the second dissent in the current rate-cutting cycle. Governor Michelle Bowman previously voted no for the 50 basis points cut in September, arguing for a  25 basis points cut at the time.

“Today was a closer call, but we decided it was the right call,” Federal Reserve Chair Jerome Powell said at a press conference on Wednesday. “It was the best decision to foster achievement of both of our goals, maximum employment and price stability. “

According to Powell, the Fed is “still on track” to make cuts in 2025 but noted that the officials will need to see further inflation cooling for that to be the case. He added that he doesn’t see any rate hikes happening next year.

The Federal Open Market Committee’s so-called “dot plot,” which provides insights into individual members’ future rate expectations, has shown that only two quarter percentage cuts are likely to happen in 2025. Back in September, the “dot plot” indicated expectations of four rate cuts.

The post Fed Cuts Interest Rates by 25 Basis Points, Projects Slower Pace in 2025 appeared first on theprimarymarket.com.

According to the report, there were 7.74 million available jobs in October compared to 7.5 million estimated by economists. It marked a 372,000 jump from September’s revised figure of 7.37 million job openings. The JOLTS report for September stated there were 7.44 million job openings.

There are currently 1.1 jobs available per unemployed person, which represents another increase from September when there were 1.08 jobs open per unemployed person.

Hiring and layoffs dropped in October. There were 5.31 million hires compared to September’s figure of 5.58 million hires, while the hiring rate went down from 3.5% to 3.3%. The layoffs dropped by 169,000 to 1.63 million. 

JOLTS report is closely watched by the Federal Reserve as part of consideration for policy moves. Economists believe that the data is favorable enough to prompt another rate cut in December before halting cuts throughout 2025.

“The report points to ongoing resilience and doesn’t flag major concerns about the economy,” Oren Klachkin, financial market economist at Nationwide, stated. “With policy still restrictive in its view, the Fed can probably push through with another rate cut before considering a pause next year.”

The post U.S. Job Openings Jump Above Estimates, Hiring and Layoffs Trending Down appeared first on theprimarymarket.com.

The benchmark S&P 500 fell by 78.55 or 1.32% to close at 5,870.62 points after going as low as 5,854.58. It ended the week down by 2.30%.

Blue-chip Dow Jones is down by 1.39% for the week after closing at 43,444.99. It lost 305.87 points or 0.70% on Friday.

Tech-heavy Nasdaq had the steepest fall, losing 502.54 or 2.40% to close at 20,394.13. The index is now down 3.67% for the week.

The stocks have been on a rally since the US presidential elections, reaching all-time heights several times. However, this surge was largely fueled by expectations that the Fed would deliver another rate cut in December.

Speaking with reporters on Thursday, Powell indicated that lowering borrowing rates isn’t guaranteed due to recent economic data. 

“The economy is not sending any signals that we need to be in a hurry to lower rates,” Powell said. “The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully.”

The post Stocks End Week With Loses After Fed Signals it Won’t “Hurry” With Rate Cuts appeared first on theprimarymarket.com.

The quarter percentage point cut brings the Fed’s benchmark rate in the range of 4.50% to 4.75%. The move follows a 50 basis points deduction from September.

According to Fed Chairman Jerome Powell, policymakers will continue to monitor the economic data in order to determine future moves. However, he reiterated that he is content with the way the U.S. economy is looking at the moment.

“This further recalibration of our policy stance will help maintain the strength of the economy and the labor market and will continue to enable further progress on inflation as we move toward a more neutral stance over time,” Fed chairman Jerome Powell said. “We think that the economy, and we think our policies, are both in a very good place, a very good place.”

Economists have mostly expected the Fed to further slash the interest rate at their latest meeting despite the aggressive move in September. They also predict that another cut will be made in December before a likely pause in January to get a better sense of the economic landscape.

The post Federal Reserve Cuts Interest Rates By Another 25 Basis Points appeared first on theprimarymarket.com.

Speaking in front of the Economic Club of Chicago, Powell said that the Fed is well-positioned to “wait for greater clarity” before deciding on interest rate changes. 

“For the time being, we are well-positioned to wait for greater clarity before considering any adjustments to our policy stance,” Powell stated.

The two main goals of the Fed are to keep the prices stable while maximizing employment. It makes changes to its policy based on which goal it needs to achieve. However, the tariffs could jeopardize both goals at the same time, causing inflation to surge while slowing economic growth.

“We may find ourselves in the challenging scenario in which our dual-mandate goals are in tension,” Powell added. “If that were to occur, we would consider how far the economy is from each goal, and the potentially different time horizons over which those respective gaps would be anticipated to close.”

The markets didn’t react positively to Powell’s remarks. The benchmarks S&P 500 slid by 120.93 points or 2.24% while tech-heavy Nasdaq Composite lost 516.01 points or 3.07%. The blue-chip Dow Jones Industrial Average went down by 700 points or 1.73%.

The post Fed to “Wait for Greater Clarity” Before Making Policy Adjustment Says Chair Jerome Powell appeared first on theprimarymarket.com.

The Fed’s benchmark borrowing rate is currently set at 4.25% to 4.5%, remaining unchanged since January. The future rate cuts are expected to amount to half a percentage point, bringing the rate to 3.75% to 4% range for the first time since November 2022.

The officials also shared their views on economic growth and inflation in the wake of recent tariff policy changes. They now expect slower economic growth and expect inflation to spike up to 2.7% compared to the current level of 2.5%.

Speaking at a press conference after the meeting, Federal Reserve Chair Jerome Powell indicated that the Fed’s stance on rates will continue to be based on the economic indicators.  

“If the economy remains strong, and inflation does not continue to move sustainably toward 2%, we can maintain policy restraint for longer,” Powell said. “If the labor market were to weaken unexpectedly, or inflation were to fall more quickly than anticipated, we can ease policy accordingly.”

The stock market reacted positively to the news, with Dow Jones Industrial Average futures jumping by 0.2%. S&P 500 futures ticked up by 0.3% as did futures attached to Nasdaq Composite.

The post Federal Reserve Keeps Interest Rates Intact, But Still Predicts Two Cuts in 2025 appeared first on theprimarymarket.com.

The S&P 500 closed at a record 6,129.58 points on Tuesday before improving by another 14.57 points or 0.24% on Wednesday for a 6,144.15 close. The index also cleared its intra-day record, reaching 6,146.80 at one point.

Nasdaq soared to 20,097.73 in the afternoon before sliding to a modest gain of 14.99 points or 0.07% to close at 20,056.25. Dow Jones jumped by 71.25 or 0.16% to end the day at 44,627.59 points.

Investors are still waiting to see the full impact of the new tariff regulation that includes a 25% tariff on imports of steel and aluminum into the United States. Additionally, the new administration announced a reciprocal tariffs policy that could become effective in April.

Additionally, the markets are digesting the minutes from the Fed’s January meeting, which were released on Wednesday. According to the release, Federal Open Market Committee officials are waiting for “further progress on inflation” before thinking about adjusting interest rates.

“Many participants noted that the Committee could hold the policy rate at a restrictive level if the economy remained strong and inflation remained elevated, while several remarked that policy could be eased if labor market conditions deteriorated, economic activity faltered, or inflation returned to 2 percent more quickly than anticipated,” the released noted.

The post S&P 500 Closes At All-Time High for Second Straight Day, Nasdaq and Dow Jones Also Record Gains appeared first on theprimarymarket.com.

The Federal Open Market Committee (FOMC) unanimously voted to pause further rate cuts at the conclusion of its two-day meeting in Washington, D.C. The move was somewhat expected, as policymakers previously indicated the intention to take a patient approach to interest rate changes in 2025.

In a statement released following the meeting, FOMC said that the economic activity in the country continued to expand “solid pace,” while adding that the unemployment rate remains at a low level and that the labor market conditions are “solid.” It also described the inflation as “somewhat elevated.”

“The Committee seeks to achieve maximum employment and inflation at the rate of 2% over the longer run,” FOMC noted. “In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks.”

Additionally, Fed chair Jerome Powell said that the U.S. central bank will have to see “real progress on inflation or some weakness in the labor market” before considering further rate adjustments.

The Fed’s decision to keep the interest rates unchanged caused a brief slide in the stock market that was diminished in the following hours. Benchmark S&P 500 was down by 0.72% at one point before closing down by 24.57 points or 0.41%.

The post Fed Unanimously Decides to Keep Its Interest Rates Intact appeared first on theprimarymarket.com.

The CPI increased by 0.4% on a seasonally adjusted basis in the last month of 2024 compared to a 0.3% jump in November while putting the 12-month inflation at 2.9%. Economists predicted a 0.3% jump and 12-month inflation of 2.9%.

However, the core CPI, which excludes volatile prices of food and gas and is the Federal Reserve’s preferred measure of inflation, has been favorable and came below expectations. It saw a jump of 0.2% and came at an annual rate of 3.2%, while economists expected a 0.3% increase and an annual rate of 3.3%.

The CPI report had a positive effect on the stock market, which rebounded following a sluggish start of the week. Benchmark S&P 500 improved by 107 points or 1.83% to close at 5,949.91, blue-chip Dow Jones Industrial Average experienced 703.27 points or 1.65% to close at 43,221.55, while the tech-heavy Nasdaq soared by 2.45% or 466.84  for a 19,511.23 points close. 

Experts believe that the CPI numbers won’t change the Fed’s intention to pause with rate cuts but should calm any concerns about interest rates going up.

“Today’s CPI may help the Fed feel a little more dovish. It won’t change expectations for a pause later this month, but it should curb some of the talk about the Fed potentially raising rates,” Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management, told CNBC. “And judging by the market’s initial response, investors appeared to feel a sense of relief after a few months of stickier inflation readings.”

The post Consumer Price Index Rises in December, But Shows Encouraging Trend appeared first on theprimarymarket.com.

In a recent interview with Bloomberg News, Collins said that she believes the latest employment data and lingering inflation call will result in fewer rate cuts than previously expected.

“Over time, it will be appropriate for some more easing, but perhaps somewhat less than I might have thought back in September,” Collins said. “Taking the time to really patiently assess the data holistically — to be analytic and patient — seems to me very likely to be appropriate as we think about policy going into 2025.”

Collins explained that the Fed officials might adopt a faster pace in case inflation shows further signs of cooling down. But if the data is inconclusive, the Fed will likely elect to stand pat.

However, she is optimistic about the labor market, where the data is more favorable.

 “On the labor market side, there were more concerns for me earlier about potential fragilities. Those concerns have eased,” she added.

The Fed slashed its benchmark rate to 4.25% to 4.5% during its December meeting. At the time, the officials said they would wait to see further improvement in inflation data before making their next move. Additionally, they forecasted just two rate cuts in 2025 compared to projections of four rate cuts from the September meeting.

The post Boston Fed President Susan Collins Supports Fewer Rate Cuts in 2025 appeared first on theprimarymarket.com.

This was the Fed’s third consecutive rate cut in 2024 and brought the benchmark interest rate to a range of 4.25% to 4.5%. The Federal Open Market Committee made the cut with a split vote with Cleveland Fed president Beth Hammack objecting to the decision.

Hammack’s objection was the second dissent in the current rate-cutting cycle. Governor Michelle Bowman previously voted no for the 50 basis points cut in September, arguing for a  25 basis points cut at the time.

“Today was a closer call, but we decided it was the right call,” Federal Reserve Chair Jerome Powell said at a press conference on Wednesday. “It was the best decision to foster achievement of both of our goals, maximum employment and price stability. “

According to Powell, the Fed is “still on track” to make cuts in 2025 but noted that the officials will need to see further inflation cooling for that to be the case. He added that he doesn’t see any rate hikes happening next year.

The Federal Open Market Committee’s so-called “dot plot,” which provides insights into individual members’ future rate expectations, has shown that only two quarter percentage cuts are likely to happen in 2025. Back in September, the “dot plot” indicated expectations of four rate cuts.

The post Fed Cuts Interest Rates by 25 Basis Points, Projects Slower Pace in 2025 appeared first on theprimarymarket.com.

According to the report, there were 7.74 million available jobs in October compared to 7.5 million estimated by economists. It marked a 372,000 jump from September’s revised figure of 7.37 million job openings. The JOLTS report for September stated there were 7.44 million job openings.

There are currently 1.1 jobs available per unemployed person, which represents another increase from September when there were 1.08 jobs open per unemployed person.

Hiring and layoffs dropped in October. There were 5.31 million hires compared to September’s figure of 5.58 million hires, while the hiring rate went down from 3.5% to 3.3%. The layoffs dropped by 169,000 to 1.63 million. 

JOLTS report is closely watched by the Federal Reserve as part of consideration for policy moves. Economists believe that the data is favorable enough to prompt another rate cut in December before halting cuts throughout 2025.

“The report points to ongoing resilience and doesn’t flag major concerns about the economy,” Oren Klachkin, financial market economist at Nationwide, stated. “With policy still restrictive in its view, the Fed can probably push through with another rate cut before considering a pause next year.”

The post U.S. Job Openings Jump Above Estimates, Hiring and Layoffs Trending Down appeared first on theprimarymarket.com.

The benchmark S&P 500 fell by 78.55 or 1.32% to close at 5,870.62 points after going as low as 5,854.58. It ended the week down by 2.30%.

Blue-chip Dow Jones is down by 1.39% for the week after closing at 43,444.99. It lost 305.87 points or 0.70% on Friday.

Tech-heavy Nasdaq had the steepest fall, losing 502.54 or 2.40% to close at 20,394.13. The index is now down 3.67% for the week.

The stocks have been on a rally since the US presidential elections, reaching all-time heights several times. However, this surge was largely fueled by expectations that the Fed would deliver another rate cut in December.

Speaking with reporters on Thursday, Powell indicated that lowering borrowing rates isn’t guaranteed due to recent economic data. 

“The economy is not sending any signals that we need to be in a hurry to lower rates,” Powell said. “The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully.”

The post Stocks End Week With Loses After Fed Signals it Won’t “Hurry” With Rate Cuts appeared first on theprimarymarket.com.

The quarter percentage point cut brings the Fed’s benchmark rate in the range of 4.50% to 4.75%. The move follows a 50 basis points deduction from September.

According to Fed Chairman Jerome Powell, policymakers will continue to monitor the economic data in order to determine future moves. However, he reiterated that he is content with the way the U.S. economy is looking at the moment.

“This further recalibration of our policy stance will help maintain the strength of the economy and the labor market and will continue to enable further progress on inflation as we move toward a more neutral stance over time,” Fed chairman Jerome Powell said. “We think that the economy, and we think our policies, are both in a very good place, a very good place.”

Economists have mostly expected the Fed to further slash the interest rate at their latest meeting despite the aggressive move in September. They also predict that another cut will be made in December before a likely pause in January to get a better sense of the economic landscape.

The post Federal Reserve Cuts Interest Rates By Another 25 Basis Points appeared first on theprimarymarket.com.