Federal Reserve's Potential Pause on Rate Cuts Sparks Investor Concern

According to Odaily, Federal Reserve Chairman Jerome Powell's recent remarks have suggested a potential pause in rate cuts at the upcoming meeting, causing dissatisfaction among investors. Despite this, some economists believe Powell's comments do not negatively impact the market. Andrew Hollenhorst, Chief U.S. Economist at Citigroup, noted that while U.S. Treasury yields rose following Powell's speech, this is more indicative of Powell keeping all options open rather than intentionally sending a hawkish signal. Goldman Sachs Chief Economist Jan Hatzius maintains the expectation that the Federal Reserve will proceed with rate cuts in December, January, and March, followed by quarterly cuts in June and September. However, Hatzius suggests that the Federal Open Market Committee (FOMC) might slow the pace of rate cuts sooner, potentially as early as the meetings in December or January. Nonetheless, unless the employment or inflation reports in November are unexpectedly strong, the likelihood of the FOMC skipping a rate cut in December remains low.