Federal Reserve Chairman Powell attended a press conference after the two-day Federal Open Market Committee interest rate policy meeting on November 7, 2024 in Washington, the United States.
Annabel Gordon | Reuters
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What you need to know today
U.S. inflation picks up
this overall inflation U.S. interest rates Growth rate in October was 2.6%in line with market expectations. Core inflation, which excludes food and energy prices, was steady at 3.3%. The overall data was above the Fed’s target, which could complicate the Fed’s easing path.
The market changed little after the inflation data was released
US market After the release of inflation data in October, the economy was basically in a range-bound state. S&P 500 Index and Dow Jones Industrial Average They rose only 0.02% and 0.11% respectively. this Nasdaq Index It closed down 0.26% on the day. across the atlanticPan-European Stoke 600 down 0.13%.
Bitcoin continues to set new records
Bitcoin continue set new record On Wednesday, traders assessed October inflation data, which briefly topped the $93,000 mark. The cryptocurrency rose to a new record of $93,469.08 before giving back some of its gains to end up at $90,476, According to coin indicators. Trump has taken a pro-cryptocurrency stance on the campaign trail, pledging to make the United States a “The Cryptocapital of Earth”.
AMD announces layoffs
chip manufacturer AMD will 4% layoffsor about 1,000 employees, as the company seeks to strengthen its position in the artificial intelligence chip field currently dominated by Nvidia. The company had 26,000 employees at the end of last year, according to SEC filings. AMD is the second largest graphics processing unit (GPU) manufacturer after Nvidia.
(PRO) Wells Fargo urges caution on Trump trade
Wall Street has been pouring money into so-called “Trump trades,” investing in companies and stocks tied to Trump’s campaign promises, but Doesn’t mean these bets will pay offAccording to Wells Fargo Investment Institute.
bottom line
Shakespeare famously said: “The world is a stage, and all men and women are but actors; they have exits and entrances, and one man plays many parts in his time.”
With October inflation data in line with expectations, the stage seems set for a final rate cut in December, which will bring the federal funds rate to the central bank’s so-called target of 4.25% to 4.5%. “Bitmap” will be released in September.
It is worth noting that October’s data was the first time since March that overall inflation rose, with the 2.6% figure above the Fed’s 2% target.
Therefore, the path to 2025 is currently less clear.
Well, the person who has to play many roles is Fed Chairman Jerome Powell. Returning to the “dot plot”, the Federal Reserve in September predicted that it would cut interest rates by another 100 basis points by the end of 2025 and by another 50 basis points by the end of 2026.
Yet, as economists say, Trump’s policies—if implemented— Inflation may occurWith Republicans expected to win a trifecta – control of the president, Senate and House of Representatives – it’s increasingly likely that he will deliver on his promise.
This means that if inflation rises again during Trump’s second term, the Fed may be forced to slow or stop its easing policy. In short, the term “higher and longer” may appear again.
