Investors are unhappy about the Fed’s 2025 outlook.
Why are the Federal Reserve’s post-meeting press conferences must-see television? They can flip the financial markets with a simple phrase or a single word. Consider this: Betting website Polymarket showed a 98% chance that Fed Chair Jerome Powell would start his news conference with the words “Good afternoon.” Why did this matter? The last time he skipped the greeting, the markets tanked. Well, he uttered those two words on December 18, and the New York Stock Exchange was still soaked in red ink at the closing bell. The world’s largest financial arena is erratic regarding the Fed.
Federal Reserve Sinks the Market
The good news for investors was that the Fed followed through on another 25-basis-point cut to the benchmark federal funds rate, lowering the target range…
