Core Insights - The Federal Reserve chairman Jerome Powell indicated that another interest rate cut in December is not guaranteed, leading to a sell-off in stocks and other risk assets [1][2]. Market Reactions - Bitcoin prices dropped by 3% to approximately $110,000 following Powell's comments, marking a significant decline in the cryptocurrency market [2]. - Other major cryptocurrencies, including ethereum and XRP, also experienced declines, reaching their lowest levels of the day after the announcement [2].

Group 1 - The Federal Reserve cut interest rates by a quarter of a percentage point during the October FOMC meeting, with dissenting votes from Stephen Miran and Jeffrey Schmid [2] - Miran advocated for a larger rate cut of half a percentage point, while Schmid preferred to maintain the current rates [2] - Miran's dissent is notable as back-to-back dissents from the same governor are uncommon in the Federal Reserve's history [2]

Group 1 - The US central bank, the Federal Reserve, has cut interest rates for the second time this year, reducing the rate by a quarter of a percentage point to a range of 3.75%-4% [1] - The decision to cut rates was made despite the government shutdown, which has frozen non-essential government functions and delayed the release of key economic data [2] - Inflation data showed a rise to 3% in September, which is 1 percentage point above the Fed's target of 2%, but lower than economists' expectations, allowing for the rate cut [3] Group 2 - Fed Chair Jerome Powell has warned that the US economy is expected to grow less, and goods may become more expensive due to increased import taxes and supply disruptions [4] - President Trump has expressed frustration with the Fed, particularly targeting Powell's leadership and attempting to remove a rate-setter from her position [5][6] - The anticipation of an interest rate cut has positively influenced US and European stock markets, leading to record highs in major stock indexes [8]

Core Points - The Federal Reserve announced a quarter-percent rate cut, aligning with market expectations despite a government shutdown disrupting major data releases [1][2] - The Fed's decision was made without complete economic data, as key reports like the September jobs report were delayed due to the government shutdown [2][4] - Chair Jerome Powell emphasized the Fed's dual mandate of maximum employment and tempered inflation, indicating a shift towards a more neutral policy in response to a softer job market [3][4] Economic Indicators - The consumer price index rose to 3% in September, slightly below the 3.1% forecast, marking the first time it has reached this level since January [8] - Job openings have declined, and unemployment has increased, with more Americans seeking work than available roles [4] - Consumer sentiment dipped in October, indicating a decrease in financial security among Americans [9] Fed's Internal Dynamics - The Federal Open Market Committee has shown division in recent decisions, with some members advocating for more aggressive rate cuts [10][11] - New Fed governor Stephen Miran preferred a half-percentage point cut, while others wanted to maintain current rates [10] - Political pressure from the Trump administration has influenced the Fed's decision-making, with calls for rate cuts from the president [12][13] Future Outlook - Powell stated that lower rates should support economic activity, particularly for consumers borrowing for mortgages and loans [14] - The Fed aims for a strong economy with a robust labor market and stable prices, although the immediate effects of a single rate cut may not be visible [14]

This story was originally published on Multifamily Dive. To receive daily news and insights, subscribe to our free daily Multifamily Dive newsletter. The Federal Reserve cut its main interest rate by 25 basis points on Wednesday to a range between 3.75% to 4% following a two-day meeting. The decision marks the second rate reduction by the central bank this year, coming after it reduced rates by a quarter point in September. However, apartment industry observers don’t expect major short-term effects from th ...

Economic Outlook - The FOMC is not releasing a Summary of Economic Projections this week, meaning no updates on interest rate forecasts from Fed officials [1] - The Fed is expected to cut the federal funds target range by 25 basis points to 3.75%-4.00% and may halt its quantitative tightening regime [2] - Markets are anticipating a 90% chance of another 25 basis point rate cut at the next FOMC meeting on December 9-10, with an overall expectation of a 115 basis point cut by the end of 2026 [2] Market Performance - US stock indexes are reaching new all-time highs, with the S&P 500, Dow Jones, and Nasdaq 100 all climbing [4] - The S&P 500 Index is up by 0.32%, the Dow Jones by 0.40%, and the Nasdaq 100 by 0.47% [5] - Easing global trade tensions are contributing to stock gains, particularly following President Trump's comments on lowering tariffs on Chinese goods [4] Sector Performance - Semiconductor stocks are showing strength, led by a 4% increase in Nvidia, following news of potential access to Nvidia's AI processor for China [3][18] - Other chipmakers like Lam Research and Advanced Micro Devices are also seeing gains of over 3% [18] Trade Relations - A tentative trade agreement between the US and China is expected to be announced, which includes China agreeing not to restrict rare earth metal exports for at least one year [8] - The US and South Korea have finalized a trade deal involving $150 billion in shipbuilding investments in the US [4] Earnings Reports - This week is significant for earnings, with 173 S&P 500 companies reporting; 84% of those that have reported so far have beaten forecasts [9] - Notable companies reporting include Alphabet, Meta, Microsoft, Apple, and Amazon [9] - Q3 profits are expected to rise by 7.2% year-over-year, the smallest increase in two years [9] Company-Specific Movements - Teradyne's stock is up over 15% after reporting Q3 net revenue of $769.2 million, exceeding expectations [19] - Seagate Technology is also up more than 15% after reporting Q1 adjusted EPS of $2.61, above consensus [19] - Bloom Energy and Caterpillar are up more than 13% and 11% respectively, following strong earnings reports [20] Market Sentiment - The ongoing US government shutdown is impacting market sentiment, with estimates of 640,000 federal workers being furloughed [13] - The shutdown is delaying the release of key economic reports, which could affect market performance [13]

Core Viewpoint - The Bank of Canada has reduced its key overnight interest rate to 2.25%, marking the lowest level since July 2022, and indicated that this may conclude its cutting cycle unless inflation and economic outlook change [1][2][3] Economic Growth Projections - The Bank of Canada revised its economic growth forecast for 2025 down to 1.2% from an earlier estimate of 1.8%, and for 2026 down to 1.1%, with a recovery expected to 1.6% in 2027 [2] - The bank anticipates annualized growth of 0.5% in the third quarter and 1% in the fourth quarter [5] Inflation Management - The Bank aims to keep annual inflation anchored at 2%, the midpoint of its target range of 1% to 3%, with an expectation that inflation will average around 2% over the year [5] - Consumer prices are projected to average approximately 2.1% in 2026 [5] Economic Conditions - Canada's economy contracted by 1.6% in the second quarter, with early indicators suggesting a potential near-contraction in the third quarter [4] - The current economic weakness is characterized as a structural transition rather than merely a cyclical downturn, limiting the effectiveness of monetary policy in stimulating demand while maintaining inflation targets [4] Trade Policy Impact - The Bank of Canada acknowledges that U.S. trade policy has been a significant factor affecting demand and costs for businesses, with the expectation that these forces will offset each other [3] - The range of possible economic outcomes remains wider than usual due to the unpredictability of U.S. trade policy [6] Currency and Market Reactions - Following the interest rate announcement, the Canadian dollar strengthened, trading up 0.22% to 1.3915 against the U.S. dollar [6] - Money markets currently do not anticipate any further rate cuts until March of the following year [6]

分组1 - Nvidia is approaching a market capitalization of $5 trillion, requiring a share price of approximately $25.36 to achieve this milestone [2][3] - The upcoming discussions involving President Trump and China are expected to focus on Nvidia chips, placing the company in the spotlight [3] - The semiconductor sector has seen a significant upward trend, with most chip companies experiencing gains, although Broadcom had a slight decline [4] 分组2 - The Federal Reserve's decision day is anticipated, with expectations of a 25 basis point cut and a high probability of a December cut [5][6] - Jerome Powell's upcoming press conference may lack transparency due to limited economic data, potentially leading to market frustration [6][7] - Major tech companies, including Meta Platforms, Microsoft, and Google Alphabet, have shown substantial stock price increases over the last six months, with Google up 67% and Meta up 35% [10]

The Fed find futures forward curve is not as clear cut this time around. The October futures contract shows an expected rate within the 4% to 4.25% range. The December futures contracts is indicating a more sizable rate cut. It’s pre-dawn Wednesday morning. Early this afternoon, the US Federal Open Market Committee (Fed, FOMC) 2-day meeting will conclude, culminating with an interest rate announcement from Chairman Jerome Powell at 14:00 (ET) and subsequent press conference (14:30). This leaves a ...

Core Viewpoint - The Federal Reserve is anticipated to cut interest rates by 0.25 percentage points to a target range of 3.75%-4.00% during its upcoming policy meeting, following a similar cut in September, marking the first reduction of the federal-funds rate this year [1][2]. Group 1 - The government shutdown has hindered the Fed's access to official economic reports, prompting officials to rely on private surveys, state data, and financial-market signals to inform their decisions [2]. - With a cooling job market and inflation remaining approximately one percentage point above the Fed's 2% target, officials are cautiously balancing their dual mandate, favoring a small pre-emptive rate cut in September to mitigate potential economic downturns [2][3]. - Investors are expected to focus on the tone of the Fed's press release and Chair Jerome Powell's post-meeting press conference, rather than the immediate policy decision, as they look for indications regarding the December meeting [3].