According to BlockBeats news, on November 18, Federal Reserve Chairman Powell’s speech last week hinted that interest rate cuts may be suspended at the upcoming meeting. The news upset investors. However, some economists did not believe Powell’s comments had a negative impact on the market. “Treasury yields moved higher on Powell’s comments, but we think this is more a sign of Powell keeping all options open rather than an intentional hawkish signal,” said Andrew Hollenhorst, Citi’s chief U.S. economist.
Hatzius, chief economist at Goldman Sachs, still expects “the Fed to cut interest rates consecutively in December, January and March, followed by quarterly cuts in June and September, but he believes the FOMC may slow down the pace of interest rate cuts more quickly. “It could come as early as the December or January meeting.” However, it is unlikely that the FOMC will skip a rate cut in December unless the November employment or inflation report is unexpectedly strong. (Golden Ten)