64 counterparties take $315.657 bln at Fed reverse repo operation.

64 counterparties take $315.657 bln at Fed reverse repo operation.

In a recent development, JPMorgan's chief market strategist, Karen Ward, expects the Federal Reserve to pause interest rate cuts after the December meeting. This prediction diverges from the mainstream view, where most economists anticipate continued rate cuts next year [1].

Ward's outlook is based on the Federal Reserve's cautious approach to rate cuts. Federal Reserve Chairman Jerome Powell stated in his latest speech that the US economy is strong and there is no immediate need to lower interest rates. He will carefully monitor inflation indicators to ensure they remain within acceptable ranges [1].

The Federal Reserve has significantly reduced rates this year. In September, it cut rates by 50 basis points, and last week, it lowered the benchmark rate by an additional 25 basis points. The market currently expects a 58% probability of another 25 basis point cut next month, according to the CME FedWatch Tool [1].

Ward believes that the Federal Reserve may pause rate cuts to assess the impact of President-elect Donald Trump's policies on the economy. She expects the Federal Reserve to cut rates once more and then possibly remain inactive in 2025 [1].

In addition to Ward, strategists at TD Securities also expect the Federal Reserve to pause rate cuts in the first half of 2025 as they assess the impact of Trump's policies [1].

On the previous day, JPMorgan's Chief Global Market Strategist David Kelly warned that President Trump's tariff plan could slow down the global economy and put upward pressure on inflation in the USA. A conflict between the Federal Reserve and the Trump administration could occur, as Trump's policies may not align with the direction of monetary policy [1].

References:
[1] https://www.moomoo.com/news/post/22770646/record-tr4cking-news-nvidia-dell-ulta-marvell-uipath-zscaler-gap-american-eagle-biggest