Latest / Markets with Megan: A Quick Financial Markets Update
Fed's Rate Cut Sparks Market Sell-Off and Inflation Concerns | Episode 195 | 12-19-24
The Fed's latest rate cut surprises the markets, revealing a shift in their inflation outlook and reducing anticipated cuts for next year. Investors react negatively, reassessing economic projections and adjusting their strategies accordingly. Verdence CIO, Megan Horneman recaps the last 24 hours and what to anticipate into the new year:
- Fed cuts interest rates by 25 basis points, but markets sell off sharply
- Market expectations for next year's rate cuts reduced from four to two
- Fed raises inflation forecasts; core PCE inflation expected at 2.5%
- Risks to employment and inflation seen…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.