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Stocks tanked after the Fed signaled fewer rate cuts next year. Here's what analysts are saying.

^{Published on 2024-12-19 07:21:09 - Business Insider}
 

• The Federal Reserve cut interest rates on Wednesday but only projected two further cuts next year. Here's what analysts are saying about the news.

The article from Business Insider discusses the Federal Reserve's decision to maintain current interest rates, as widely anticipated by Wall Street. Analysts and market observers had mixed reactions to the Fed's latest policy statement and the accompanying economic projections. While some were relieved that the Fed did not signal an immediate rate hike, others expressed concerns over the Fed's hawkish tone, suggesting that rates might remain higher for longer than previously expected. The Fed's dot plot indicated a potential for one more rate increase in 2024, which introduced uncertainty into the market. This decision comes amidst a backdrop of persistent inflation, robust economic growth, and a tight labor market, leading to varied expectations about future monetary policy moves. Wall Street's response was cautious, with stock indices showing volatility as investors recalibrated their strategies in light of the Fed's signals.

Read the Full Business Insider Article at:
[ https://www.businessinsider.com/federal-reserve-fed-interest-rates-analyst-reaction-wall-street-stocks-2024-12 ]

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