Powell’s Warning: Rate-Cut Autopilot Is Off⚠️
Jerome Powell has cooled market expectations by saying that a December rate cut is not confirmed and the Fed is clearly divided internally with no policy on autopilot
This shift has turned what seemed like a certain decision into a fifty fifty call and the sudden uncertainty has shaken stocks and overall risk appetite
Powell highlighted that the Fed is balancing two major pressures — a weakening job market on one side and stubborn inflation still above target on the other making upcoming economic data extremely important for the December decision
The ongoing US government shutdown has created a dangerous data blind spot as key inflation and employment reports are paused leaving the Fed to navigate in the fog and making the next move even harder
Wall Street has received a strong wake up call that more rate cuts are not guaranteed and Powell has replaced confidence with suspense so traders must stay alert
