With uncertainty lingering over how President-elect Donald Trump's policy intentions could affect vital parts of the economy, December no longer looks like a done deal for an interest rate cut. Traders on Monday were pricing in barely a 50% probability that the Federal Reserve will lower its benchmark rate when it convenes Dec. 17-18, according to the CME Group's FedWatch gauge. A few weeks ago, the implied probability was north of 80%, or a virtual shoo-in.
Liz Ann Sonders, Jones' counterpart at Schwab on the equity side, agreed, noting how difficult it is for business leaders to separate out the noise from reality. "If you're a business leader and you're trying to plan out, you've got to be in wait and see mode in terms of those policies like immigration and tariffs," Sonders said.