Reported 3 days ago
Federal Reserve Chair Jerome Powell's cautious stance on interest-rate cuts for 2025 caught Wall Street off guard, leading to a major selloff in stocks and bonds. Following the Fed's third consecutive rate cut, markets reacted sharply with a 3% decline in stocks and rising yields on 10-year Treasuries, indicating a loss of faith in ongoing economic support. The Fed's prediction of only two more rate cuts over the next year refocused investor sentiment, highlighting how ill-prepared markets were for this shift.
Source: YAHOO