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The Fed Resets Expectations for Next Year | Weekly Market Commentary | December 23, 2024

The Fed Resets Expectations for Next Year | Weekly Market Commentary | December 23, 2024

The Federal Reserve (Fed) is moving more cautiously in adjusting policy, and markets might have a hard time resetting expectations. Throughout the latest press conference with Fed Chair Jerome Powell, equity markets declined as investors were befuddled with the large upward revision to 2025 inflation forecasts; despite disappointing inflation projections, the “vibecession” is over as businesses and consumers have become more optimistic.

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