The Federal Reserve’s decision to pause further interest-rate cuts has been hailed by economists, despite a tumultuous week on Wall Street. A closely watched inflation indicator and a round of budget brinkmanship on Capitol Hill have left investors with uncertainty.
According to Steve Blitz, chief U.S. economist at TS Lombard, the November personal-income data suggests that the Fed made the correct decision in stopping rate cuts. This signal comes as investors struggle to make sense of market volatility. With the recent tumble in the stock market, it’s clear that economic conditions are becoming increasingly complex.
The Fed’s stance on interest rates has been a subject of debate among economists and investors alike. The recent pause in rate cuts has sent a reassuring message about the central bank’s commitment to maintaining economic stability. While there is still uncertainty surrounding future policy decisions, the current trend suggests that the Fed is taking a cautious approach.
As the market continues to navigate these complex economic conditions, one thing is clear: the Fed’s decision to pause further interest-rate cuts has been seen as the right call by many economists and investors.
Source: https://www.marketwatch.com/story/forget-the-stock-market-tumble-the-fed-made-the-right-move-in-a-wild-week-1a73f20b