Latest / Markets with Megan: A Quick Financial Markets Update / Fed Minutes, Market Moves, and a 60-Day Ceasefire | Episode 191 | 11-26-24
Transcript
- 0:01Megan Horneman: The Fed didn't really deliver any surprises to the market.
- 0:03Megan Horneman: And the reason why we like to look at these minutes is when they have their initial meeting, they just release a statement and then typically have a press conference after that.
- 0:20Megan Horneman: But we get the full context of the meeting, the full meeting minutes, a couple weeks after each meeting, and today we got those meeting minutes from that November meeting and what I think people were hoping to see was that the Fed was still on their consistent rate-cutting path.
- 0:35Megan Horneman: Instead, what we got today was more indication that they're okay if they need to slow the pace of rate cuts.
- 0:42Megan Horneman: They're data-dependent clearly , but some of the comments that came out of the official meetings were almost all of the officials saw balanced risks to employment and inflation.
- 0:53Megan Horneman: They also show that some of the firms are starting to become more reluctant to raise prices, which is good for inflation.
- 1:01Megan Horneman: However, they're also being more selective in hiring, which is negative for employment.
- 1:06Megan Horneman: So that's where you get that balance strict between risks, between inflation and employment.
- 1:11Megan Horneman: Now the equity markets rallied on some of the news today not necessarily the FOMC minutes because it wasn't a major, anything majorly different than what we've heard from other Fed officials, but it was really that 60 day ceasefire agreement that we we have between Hezbollah and Israel that's caused some of the equities here to rally.
- 1:30Megan Horneman: In the bond side we did see interest rates that sold off, meaning yields rose quite a bit today, but they have now backed up and have come down a little bit on this news that the Fed may not cut as aggressively as some had anticipated.
- 1:44Megan Horneman: We still think December meetings on the table.
- 1:47Megan Horneman: It's clearly going to depend on any inflation data and then specifically, really that December the employment report we'll get for November that we get in early December.
- 1:57Megan Horneman: That's all we have today.
- 1:58Megan Horneman: Have a very happy Thanksgiving and we will be back next week with some more economic data.
- 2:03Megan Horneman: Please don't forget if you like this podcast, subscribe, hit that alarm bell, send it to friends, family or colleagues, and if you'd like a history of our podcast, please feel free to go to marketswithmegan fm.
- 2:14Megan Horneman: Thank you.