Fed Cuts Rates but Signals Uncertainty on Future Cuts
(MENAFN) The New York Stock Exchange wrapped up midweek trading on a mixed trajectory following the Federal Reserve's decision to lower the policy rate by 25 basis points, while Chair Jerome Powell emphasized that another rate reduction at the December meeting is "far from a foregone conclusion."
The Dow Jones Industrial Average dropped 0.16%, losing 74.37 points to finish at 47,632.
Conversely, the Nasdaq gained 0.55%, adding 130.98 points to reach 23,958.47, and the S&P 500 remained largely unchanged at 6,890.59 points.
This uneven performance came in response to the Fed’s move to cut the federal funds rate by 25 basis points to a range of 3.75%-4%, alongside Powell’s caution regarding the likelihood of another rate cut this year.
In its monetary policy statement, the central bank highlighted that downside risks to employment have increased in recent months, while inflation has risen since earlier in the year and continues to be "somewhat" elevated.
Additionally, the Federal Reserve announced it would halt the balance sheet reduction process starting December 1.
During the post-meeting press briefing, Powell expressed skepticism about another policy rate cut in December, countering market expectations by stating it "is not a foregone conclusion, far from it."
“In the committee’s discussions at this meeting, there were strongly differing views about how to proceed in December. A further reduction in the policy rate at the December meeting is not a foregone conclusion. Far from it," Powell remarked.
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