Economy and Stock Market Reactions to Donald Trump's Influence on Fed Predictions
Wednesday, 18 December 2024, 22:46
Economic Shifts Driven by Donald Trump's Policies
The recent shift in the economy and stock market sentiment was significantly influenced by Donald Trump's policies and the Federal Reserve's latest forecast. U.S. stocks experienced a dramatic downturn, with the S&P 500 falling 178 points, translating to a 3% drop. The Dow Jones Industrial Average also took a hit, losing 1,123 points (2.6%) while the Nasdaq composite dropped by 3.6%. This decline reflects the market's reaction to the Fed's announcement regarding fewer anticipated interest rate cuts in 2025.
Investor Reactions to Fed's Predictions
- The Federal Reserve announced its third rate cut of the year, maintaining a trend from September's significant rate adjustments aimed at boosting the job market.
- Market analysts noted that the Fed's recent acknowledgments have contributed to rising economic uncertainties.
- Despite Wall Street's preference for lower rates, the reduced rate cut expectations for 2025 unsettled many investors.
- The ongoing inflation rates have influenced economists to adjust their forecasts, signaling a cautious approach going forward.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.