The Weekly Market Compass #3
Navigating the financial landscape - a week in review
Hawkish Pause Extended
Last week's FOMC meeting, spearheaded by Jerome Powell, brought us an extension of the "hawkish pause." This marks four months without any rate changes after a hefty 500bps of hikes over 17 months. However, Powell made it clear that the door remains open for potential future rate hikes if the need arises.
Mixed Signals: Weak Payrolls and Moody’s Downgrade
October's weak payrolls and the Moody’s downgrade of the US credit rating outlook added some clouds to the economic horizon. The downgrade suggests that even Wall Street is a bit sceptical about the US debt situation.