🧵 1. Stocks hit record highs, S&P 500 closing at 4,894.16. Fed's rate cut debate intensifies, with 47% chance for March cut, down from 83% a month ago. #finance
🧵 1. Stocks hit record highs, S&P 500 closing at 4,894.16. Fed's rate cut debate intensifies, with 47% chance for March cut, down from 83% a month ago. #finance
🧵 2. Lower odds of a rate cut could bearish for stocks, but is it overblown? Potential 25-bp cut from 5.25%-5.5% range isn't as significant as previous hikes from near 0%.
🧵 3. Early rate hikes in 2022 were amid an inflation crisis, but current inflation rates near target levels. Core PCE price index fell to lowest level in nearly three years.
🧵 4. Stakes for upcoming Fed meetings not as high as in 2022-23. Rate cuts and rate hikes have different implications, making the situation complex.
🧵 5. The question isn't just about whether the Fed cuts rates, but also about the broader economic factors at play. The world is complicated, and all things are never equal.
🧵 Read more at: https://finance.yahoo.com/news/whether-or-not-the-fed-cuts-rates-is-not-the-right-question-151121306.html