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Federal Reserve adopts cautious stance amid uncertainty over Trump's policies
The Federal Reserve is adopting a cautious stance on monetary policy as it assesses the potential economic impacts of President Trump's incoming policies. With inflation above the 2% target and recent rate cuts already in place, officials emphasize the need for a neutral approach to balance growth and inflation control.Federal Reserve officials, including Governor Michelle W. Bowman and Kansas City President Jeff Schmid, have highlighted the importance of patience and careful evaluation of economic conditions, reflecting uncertainty over future rate cuts amid mixed economic data.
fed officials adopt neutral stance as they await clarity from trump
Federal Reserve officials are adopting a neutral policy stance as they await clearer guidance from the incoming Trump administration. Fed Governor Michelle W. Bowman emphasized caution in adjusting the policy rate, while Kansas City Fed President Jeff Schmid noted the economy's strong performance may not necessitate further rate cuts. With markets predicting a 95.2% chance of unchanged interest rates at the upcoming meeting, concerns arise in the crypto market regarding potential interest rate hikes impacting investment attractiveness.
Treasury yields decline as investors await economic data and Fed speeches
The 10-year Treasury yield fell to 4.390% as investors await key economic data and speeches from Federal Reserve officials. The market is closely watching developments in the Russia-Ukraine conflict and potential Treasury secretary candidates under President-elect Donald Trump. Upcoming data includes jobless claims and the Philadelphia Fed manufacturing index, while Fed officials express concerns about inflation progress.