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Benzinga
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Powell Taps The Brakes In The Fog, But Traders Keep Hitting The Gas

1. Fed Chair Powell rejects December rate cut expectations, emphasizing economic uncertainty. 2. Market still expects a 69% chance of a rate cut in December despite Powell's statements. 3. Analysts are divided on future rate cuts, with Goldman Sachs maintaining a bullish outlook. 4. Powell warns of the risks associated with uncertain economic indicators. 5. S&P 500 closed lower, but some analysts see a buying opportunity ahead.

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FAQ

Why Neutral?

The mixed messages from Powell created uncertainty, similar to situations in mid-2018 and 2020 when gradual rate changes led to market volatility without significant long-term impact.

How important is it?

Market responses to Fed guidance strongly influence S&P 500 movement, particularly during rate decision periods.

Why Short Term?

Immediate market perceptions can fluctuate based on Fed announcements, akin to reactions seen in early 2022 around rate hike speculations.

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