Powell talked up a “clear improvement” in what’s expected for the economy in the year ahead. The Fed chief reiterated the labor market has shown signs of stabilising, but added, “I wouldn’t go too far with that,” noting there were also signs of cooling. He demurred when asked what it may take for the committee to cut again.
(Jan 29): The Federal Reserve’s decision to leave rates steady sent stocks and bonds wavering, with Jerome Powell refraining from signaling any imminent resumption of rate cuts amid a solid economy. The dollar rose as Treasury Secretary Scott Bessent touted a strong currency.
Bonds barely budged. Following a tech-led rally that drove the S&P 500 briefly above 7,000, equity gains faded. In late hours, Meta Platforms Inc jumped on a bullish outlook. Tesla Inc. climbed as profit beat estimates. Microsoft Corp sank as record spending raised concerns that it will take longer than expected for artificial-intelligence investments to pay off.
