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Fed’s Hammack Says Central Bank Should Pause Rate Cuts

1. Fed President Hammack opposes another interest-rate cut in December. 2. Inflation poses a greater economic threat than a cooling labor market. 3. Current inflation rate is slightly above target at 3%, up from 2.9%. 4. Labor market holding steady despite mixed private data on job growth. 5. Final Fed policy meeting of the year scheduled for December 9-10.

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FAQ

Why Bearish?

Hammack's caution on rate cuts and inflation concerns may dampen investor sentiment, reminiscent of previous periods when inflation fears led to market corrections.

How important is it?

Inflation concerns and rate cut hesitations can significantly influence SPY due to their implications on economic stability and market confidence.

Why Short Term?

Immediate market reactions are expected ahead of the December Fed meeting, similar to past rate decision periods impacting SPY in the short run.

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