December Fed Rate Cut Still Likely, Despite Powell Pushback; S&P 500 Wavers

Economic Policy and Market Impact - The Federal Reserve is expected to announce a rate cut during today's meeting, which could support the ongoing rally in the S&P 500, marking a potential fifth consecutive session of gains and a fourth record closing high [1][5] - Economic uncertainty stemming from trade wars may be easing, with potential deals in Japan and South Korea, which could positively influence market sentiment [2] - The likelihood of a quarter-point rate cut at the December 10 Fed meeting has increased, supported by recent consumer price index data indicating a decrease in core services inflation [3] Federal Reserve Actions - Chair Powell indicated that the Fed may end balance-sheet runoff soon to facilitate smoother monetary policy operations, with expectations of a shift to asset purchases early next year [6][9] - The Fed has been reducing its $6.3 trillion holdings in Treasury and mortgage securities by up to $35 billion per month, although the actual pace has been around $20 billion per month due to various constraints [7][8] Market Performance - The S&P 500 has seen a 2.9% increase over the last four trading days and is up 17.2% year-to-date, reflecting strong market performance since President Trump's tariff adjustments [10]