Fed Is Not Thinking About Rate Cuts Right Now At All?

Wolf Richter at Wolf Street views the Fed’s recent meeting as another “Hawkish Hold,” signaling that rate hikes could still be on the table, while the end of hikes seems to lead to a ‘higher for longer’ plateau. Despite Powell’s assertion that the Fed isn’t considering rate cuts, the general stance from the meeting suggests a hold bias rather than a tightening bias. The stock market, after initial uncertainty, seems to have interpreted this as signaling the end of hikes. Upcoming jobs reports and economic data will be crucial in shaping the Fed’s next moves, with recent ISM figures hinting at a potential cooling in the economy. I think hikes are done.