First Expert Commentary on the Fed Interest Rate Decision and Powell’s Speech: Here’s What You Need to Know

The Fed lowered the upper band of its policy rate by 25 basis points from 4.25% to 4.00%. This decision was in line with market ￰0￱ FOMC announced that the balance sheet reduction process will end on December ￰1￱ that date onward, principal payments from maturing Treasury bonds will be reinvested in ￰2￱ also stated that principal payments from agency bonds and mortgage-backed securities (MBS) will be redirected to short-term Treasury ￰3￱ Timiraos, a Wall Street Journal columnist and known as a “Fed spokesman,” said that Chairman Jerome Powell's statements suggest that FOMC members are not aligned with market expectations for a December rate ￰4￱ to Timiraos, Powell stated that another December rate cut is “far from certain.” Related News: Bitcoin Plunged Then Recovered During Fed Chair Powell's Speech!

Here's Why “There are strong disagreements about how we should proceed in December,” Powell said at the press conference, highlighting the diverse views within the ￰5￱ also noted that uncertainty is high due to a lack of government data, adding, “In this type of environment, prudence can be in our favor.” Timiraos commented that Powell's stance was a strategic move to maintain flexibility in monetary policy and avoid being swayed by the market's one-sided expectations. *This is not investment ￰6￱ Reading: First Expert Commentary on the Fed Interest Rate Decision and Powell’s Speech: Here’s What You Need to Know