Investors Rally for Rate Cuts, but Powell Says Hold Up ✋

Markets are rallying on rate cut expectations, but Powell warns about rising inflation and a weakening job market. See what’s next for the economy and the Fed’s cautious path.

Who's right Investors or the Fed? Drop your thoughts in the comments! 👇

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📊 Market Update (9/23/25):
Investors are betting on bigger rate cuts, but Powell’s trying to rein in the optimism. Markets have rallied since last week’s Fed meeting. Even though the Fed only penciled in three more cuts through next year, investors are still betting on four or five. On Tuesday, Powell poured some cold water on it noting: both weakening labor market risks as well as accelerating inflation risks.

Here’s the breakdown. On Inflation, Tariffs are the main concern. So far, retailers and importers are absorbing the costs, but eventually it will flow through to consumers - likely next year. Then, on Jobs… Job creation has weakened sharply which drove last week’s rate cut. But Powell noted other labor indicators remain stable and unemployment is still historically low. Ultimately, the Fed is trying to prevent an acceleration in job losses while still balancing inflation upside risks. Essentially, the Fed is stuck: increasing inflation risks vs. a weakening jobs market. With both of its dual mandates at risk, there is “no risk-free path”. Meanwhile, markets are still all in on aggressive cuts to stabilize labor markets. Despite a minor pullback Tuesday, the investors still full throttle.

So, what’s next? Well, eyes on the jobs data coming next week, followed by more inflation data mid-October. Markets will likely tolerate slightly hotter inflation and will want labor markets soft (but not crashing).

So what do you think? Will the economy thread the needle for the market’s rate cuts or will the Fed prove wise with its caution?

#Shorts #StockMarket #Economy #InvestingTips #RateCuts #FedReserve

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Видео Investors Rally for Rate Cuts, but Powell Says Hold Up ✋ канала Ursa Invest