Fed’s higher inflation forecast and rate projections rattle the stock market

Fortune12-19

The stock market took an unexpectedly nasty tumble following a routine rate cut amid—critically—broader signals that the Federal Reserve might only cut rates twice in 2025 instead of four more times. ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2492196715?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/VYNdNHcEuoUzIs2aOJUViA--~B/aD0xMzY1O3c9MjA0ODthcHBpZD15dGFjaHlvbg--/https://media.zenfs.com/en/fortune_175/aadeaf50bbf4ad6b021d91185e411fe6","is_english":true,"pubTime":"2024-12-19 08:12","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2492196715","market":"us","top_or_hot":-1,"title":"Fed’s higher inflation forecast and rate projections rattle the stock market","media":"Fortune","content":"<div>\n<p>The stock market took an unexpectedly nasty tumble following a routine rate cut amid—critically—broader signals that the Federal Reserve might only cut rates twice in 2025 instead of four more times.\n...</p>\n\n<a href=\"https://finance.yahoo.com/news/fed-higher-inflation-forecast-rate-001228573.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Fed’s higher inflation forecast and rate projections rattle the stock market</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nFed’s higher inflation forecast and rate projections rattle the stock market\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-19 08:12 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/fed-higher-inflation-forecast-rate-001228573.html><strong>Fortune</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The stock market took an unexpectedly nasty tumble following a routine rate cut amid—critically—broader signals that the Federal Reserve might only cut rates twice in 2025 instead of four more times.\n...</p>\n\n<a href=\"https://finance.yahoo.com/news/fed-higher-inflation-forecast-rate-001228573.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0772969993.USD","symbol_name":"FIDELITY GLOBAL DIVIDEND \"A\" (USD) ACC","start_time":0,"source_url":"https://finance.yahoo.com/news/fed-higher-inflation-forecast-rate-001228573.html","article_id":"2492196715","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/VYNdNHcEuoUzIs2aOJUViA--~B/aD0xMzY1O3c9MjA0ODthcHBpZD15dGFjaHlvbg--/https://media.zenfs.com/en/fortune_175/aadeaf50bbf4ad6b021d91185e411fe6"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2492196715","pubTimestamp":1734567148,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"The stock market took an unexpectedly nasty tumble following a routine rate cut amid—critically—broader signals that the Federal Reserve might only cut rates twice in 2025 instead of four more times.Markets nosedived in response to indications of a more conservative stance than previously expected. The Dow Jones Industrial Average dropped 2.6%, while the Nasdaq composite fell more than 3.5%. The S&P 500 sunk 2.9%. Among the key signals from the Fed include a higher terminal interest rate projection of 3% rather than 2.875%, and an increased inflation forecast of 2.5% next year. Both points suggest the Fed will slow its roll on rate cuts until inflation shows a steady decline.Trump’s stance on tariffs and trade could also deal a significant blow to inflation, he wrote, and possibly longer-term impacts on growth. “The point being that we are entering a very different period of policy-influence, and consequently growth and inflation reaction,” said Rieder.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0772969993.USD":"FIDELITY GLOBAL DIVIDEND \"A\" (USD) ACC","LU1280957306.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQUITIES \"AUP\" (USD) INC","LU1481011671.HKD":"FIDELITY GLOBAL DIVIDEND \"A\" (HKDHDG) INC","LU2592432038.USD":"WELLINGTON MULTI-ASSET HIGH INCOME \"A\" (USD) ACC","BK4535":"淡马锡持仓","LU1670628061.USD":"M&G (LUX) NORTH AMERICAN DIVIDEND \"A\" (USD) INC","LU1670627923.USD":"M&G (LUX) NORTH AMERICAN DIVIDEND \"A\" (USD) ACC","LU1481011911.USD":"FIDELITY GLOBAL DIVIDEND \"A\" (USDHDG) INC","BK4588":"碎股","LU2264538146.SGD":"Fullerton Lux Funds - Global Absolute Alpha A Acc SGD","IE00B64PRP62.GBP":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (GBP) ACC","LU0320765489.SGD":"FTIF - Franklin Mutual US Value A Acc SGD","COMP":"Compass, Inc.","LU0070302665.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) ACC","LU0130102774.USD":"Natixis Harris Associates US Equity RA USD","LU1599440770.SGD":"FIDELITY GLOBAL DIVIDEND \"A\" (SGDHDG) INC","IE00BGHQF748.EUR":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (EUR) ACC","BLK":"贝莱德","LU0648001328.SGD":"Natixis Harris Associates US Equity RA SGD","LU2505996509.AUD":"WELLINGTON MULTI-ASSET HIGH INCOME \"AM4H\" (AUDHDG) INC","LU1291159041.SGD":"CPR Invest - Global Silver Age A2 Acc SGD-H","IE00BVYPNV92.GBP":"GUINNESS GLOBAL EQUITY INCOME \"C\" (GBP) ACC","BK4504":"桥水持仓","LU1064131342.USD":"Fullerton Lux Funds - Global Absolute Alpha A Acc USD","IE00B3PB1722.GBP":"GUINNESS GLOBAL EQUITY INCOME \"C\" (GBP) INC","LU1074936037.SGD":"JPMorgan Funds - US Value A (acc) SGD","BK4135":"资产管理与托管银行","BK4533":"AQR资本管理(全球第二大对冲基金)","LU0731783394.SGD":"Fidelity Global Dividend A-MINCOME(G)-SGD","LU0980610538.SGD":"Natixis Harris Associates US Equity RA SGD-H","LU1989771016.USD":"东方汇理环球老龄化投资基金 A2 Acc","LU1988902786.USD":"FULLERTON LUX FUNDS GLOBAL ABSOLUTE ALPHA \"I\" (USD) ACC","LU2430703178.SGD":"WELLINGTON MULTI-ASSET HIGH INCOME \"AM4H\" (SGDHDG) INC","IE00BDGV0183.EUR":"GUINNESS GLOBAL EQUITY INCOME \"C\" (EUR) INC","BK4567":"ESG概念","LU0731783048.USD":"FIDELITY GLOBAL DIVIDEND \"A\" (USD) INC MONTHLY (G)","IE00BVYPNW00.USD":"GUINNESS GLOBAL EQUITY INCOME \"C\" (USD) ACC","LU2430703251.USD":"WELLINGTON MULTI-ASSET HIGH INCOME \"AM4\" (USD) INC","LU1509826696.USD":"FIDELITY GLOBAL DIVIDEND \"A\" (USD) INC B","BK4534":"瑞士信贷持仓","LU0208291251.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) INC","LU0640476718.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQ \"AU\" (USD) ACC"},"translate_title":"美联储较高的通胀预测和利率预测令股市不安","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"US7Y.BOND":1,"US10Y.BOND":1,"US12M.BOND":1,"US2Y.BOND":1,"US30Y.BOND":1,"US3Y.BOND":1,"US5Y.BOND":1,"US6M.BOND":1,"COMP":0.9,"BLK":0.68},"content_text":"The stock market took an unexpectedly nasty tumble following a routine rate cut amid—critically—broader signals that the Federal Reserve might only cut rates twice in 2025 instead of four more times.\n\n Markets nosedived in response to indications of a more conservative stance than previously expected. The Dow Jones Industrial Average dropped 2.6%, while the Nasdaq composite fell more than 3.5%. The S&P 500 sunk 2.9%. Among the key signals from the Fed include a higher terminal interest rate projection of 3% rather than 2.875%, and an increased inflation forecast of 2.5% next year. Both points suggest the Fed will slow its roll on rate cuts until inflation shows a steady decline. \nBrian Albrecht, chief economist at the International Center for Law and Economics, noted that, as always, reading any stock movement is \"a fickle thing,\" he told Fortune. \n\"Here the timing strongly suggests it’s because of the worry of inflation returning (or the Fed thinking it will),\" said Albrecht. \nIn a statement, BlackRock chief investment office of global fixed income Rick Rieder said the Fed’s moves essentially signal the end of one story and the beginning of another. “To us, this suggests that we’ve entered a new phase of the rate cutting cycle,” wrote Rieder, who is the head of BlackRock’s global allocation investment team. “In fact, we now enter a period that may be quite different than the prior couple of quarters.” BlackRock manages $3 trillion in fixed income assets for its clients. \nFed officials use what’s called a dot plot to show where interest rates might be in the future, with each dot representing an individual’s viewpoint. The dot plot is published every quarter. The plot on Wednesday showed a reduction in expected rate cuts from four to two, and an increase in the terminal interest rate projection. According to Rieder, who played on the Warner Brothers cartoon ending, “That’s all folks!” it might be the end of the intense focus on the dot plot. “‘Dots’ All Folks,” Rieder wrote. \nThe dot plot is less critical now because the transition from President Biden to President-elect Donald Trump “will introduce new, and arguably unpredictable influences on the economy, and specifically on the Fed’s employment and inflation objectives,” said Rieder.\nOne of Trump’s clear priorities is a focus on illegal immigration. “That said, legal immigration has been a major influence on hiring in the United States over the prior few years, to the tune of an estimated several million people hired, and it’s very much been at the heart of solving some major U.S. employment deficiencies in areas such as restaurants, hotels, airlines, education, healthcare, etc.”\nTrump’s stance on tariffs and trade could also deal a significant blow to inflation, he wrote, and possibly longer-term impacts on growth. “The point being that we are entering a very different period of policy-influence, and consequently growth and inflation reaction,” said Rieder.\nGiven the uncertainty, it might be time for the Fed to yell, “Dots All folks,” on near-term rate cuts.   \nThis story was originally featured on Fortune.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2492196715"}