After clashing in recent years, Wall Street traders and the Federal Reserve are – for once – broadly in sync: The great monetary pivot is near as central bankers engineer a once-unthinkable soft landing in the world’s largest economy.
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Wall Street is gearing up for what’s expected to be the most important Federal Reserve meeting of the year, with traders awaiting any indications on whether the market’s aggressive dovish bid is now overdone.
US consumer prices picked up in November, reinforcing the Federal Reserve’s resolve to keep interest rates elevated in the near term.
Stocks kicked off the week on a cautious note, with traders refraining from making any significant bets ahead of key economic data and meetings from major central banks that will test the market’s optimism on rate cuts in 2024.
The US labor market unexpectedly strengthened in November with pickups in employment and wages, deflating bets the Federal Reserve will cut interest rates early next year.
Proponents of a soft vs. hard landing may differ in their assessment of the current slowdown, but they can probably agree on one thing: The Fed will start cutting rates well before it’s clear what kind of landing we’re headed for.
US equity contracts slid as traders pushed back on optimistic scenarios that central bankers will cut interest rates in time to avert recession.
A torrid bond-market rally shows traders are convinced the Federal Reserve’s rate-rising cycle is over.
Federal Reserve officials shifted their tone this week, inching closer to the conversation markets have long been having: When will the central bank begin cutting interest rates?