All eyes on Fed as stock market pines for rate cut

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The Federal Open Market Committee meeting next week is shaping up as a pivotal o...

NEW YORK - The Federal Open Market Committee meeting next week is shaping up as a pivotal one for Wall Street, with stocks primed for a selloff should the Fed fail to take an even more dovish tilt after policymakers raised expectations for a rate cut in recent weeks.

Bets for a rate cut were amplified by comments from Fed Chairman Jerome Powell on June 4, who said the central bank will respond “as appropriate” to the risks from a global trade war and other developments, and after a weak May payrolls report on June 7. “So now you’ve got Powell is kind of painted into a corner that he is really going to have to navigate carefully because you have market expectations that he said he would do whatever is appropriate.”

Any clarity from the G20 may be hard to come by, however. U.S. President Donald Trump said on Friday “it doesn’t matter” if Chinese leader Xi Jinping attends the Group of 20 summit later this month, predicting a trade deal with Beijing would occur at some point anyway. “There were some important prints that confirmed some of the Fed’s fears – we didn’t get PCE but in PPI and CPI, you are not seeing inflation pressure bleeding through,” said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management in Seattle.

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People worry way to much about Wall Street .

No nothing

To heck with the stock market. Haven't they made enough money in the last 10 years? RAISE the interest rates, let the market readjust and those with meager savings can earn a few buck for a change.

I thought this was a great economy?

Who OWNS The Fed? I can tell 'you' it isn't The United States of America. Who will Kill the Fed...The United States of America. RESET coming. Do 'you' guys Really report News? WWG1WGA realDonaldTrump

i pine for the days before wall street wrecked the fucking economy

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Source: CNBC - 🏆 12. / 72 Read more »