Market Analysis: The Federal Reserve warns the market not to take interest rate cuts for granted.
TL;DR
The Federal Reserve warns markets not to assume future interest rate cuts are guaranteed, emphasizing uncertainty in timing and magnitude. Rate cuts may only occur if the economy slows significantly, with a robust economy preferred over further cuts.
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Odaily Odaily reports that Chris Grisanti, Chief Market Strategist at MAI Capital Management in New York, commented on the Federal Reserve's interest rate decision: "The initial reaction was no surprise; rates were lowered as expected. But when you look ahead, you see a lot of uncertainty. As we move from today's rate cuts to 2026, the tailwind effect of these cuts will no longer be as reliable. This could become a problem. Further, with the Fed's revised wording emphasizing the uncertainty surrounding the 'magnitude and timing' of future rate cuts, the Fed is essentially sending a signal to the market: don't take rate cuts for granted. In my view, this means we will only see more rate cuts if the economy slows significantly. As a stock investor, I hope there won't be any rate cuts in 2026, because that would mean the economy is weakening. I would rather have a robust economy than more rate cuts." (Jinshi)