Powell starts braking
The Fed announced today another 25 bps cut of interest rates. That was expected and stimulating but the shortterm outlook is rather dry: a break, as far as further cuts are concerned is rather likely. The economy is robust enough and inflation sticky.
Markets react dissapointed
The S&P 500 reacted prompt with a decline of -1.2% after the announcement. Also Bitcoin and the whole crypto market is down. Is the Santa Clause Rallye canceled then? In my view that‘s too early to say. Of course the market has to digest a bit but that‘s no drama. I think the decline today could be an overreaction, the general upwards trend is fully intact.
