Federal Reserve Chair Jerome Powell struck a cautious tone for 2025 in the press conference following the central bank’s decision to cut interest rates by 25 basis points yesterday. Powell cited uncertainties, tied to fiscal policy decisions and the incoming Trump administration, as the Fed forecasted fewer rate cuts than previously projected for next year.
“What we got really is an economic outcome that is very rare historically. It’s really the combination of unemployment and GDP [gross domestic product] growth. So we’ve been in the vicinity of 4%, we’re now running 3% GDP growth for the last two years,” Deutsche Bank Chief Global Strategist Binky Chadha tells Julie Hyman and Josh Lipton on Market Domination.
“That combination is very, very rare historically. It is that combination that drives fundamental volatility, argues it should come down, should be lower. And that’s where we kind of were…,” Chadha goes on to say. He characterizes this balance as an “economic nirvana” of sorts infrequent in history, a sentiment echoed by Wall Street Journal chief economics correspondent Nick Timiraos.
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This post was written by Luke Carberry Mogan.
