Can the Fed postpone the interest rate cut?

The Federal Reserve (Fed) took a new decision during its meeting held on October 28-29 by lowering the interest rate by 25 basis points, bringing it to a range of 3.75-4. This move was considered an important development in terms of providing positive signals for the economy. However, during the subsequent press conference, Fed Chairman Jerome Powell made noteworthy statements.

Powell stated that no definitive decision has been made regarding an interest rate cut at the meeting scheduled for December, and that it is "not certain." These remarks caused continued uncertainty in the markets. Notably, Powell emphasized that there are significant differences of opinion among members regarding interest rate cuts at the December meeting and that decisions could change depending on the evolution of circumstances.

The statements made at the meeting provided important clues about the future of the Fed's monetary policy strategy. The trajectory of economic data and the shaping of inflation targets will largely influence the decisions that the Fed will make. This situation resonated in global markets and led to concerns among investors.

Interest rate cuts are generally implemented to stimulate economic growth; however, the Fed's cautious approach in this regard continues to create uncertainty in the economy. Powell's statements highlight the Fed's approach to carefully examining the current economic situation and evaluating the data. Therefore, the decisions that the Fed will make in the coming period are eagerly awaited.

Responses in the financial markets express concerns and potential fluctuations regarding the Fed's stance. Investors will continue to closely monitor the effects of the uncertainties surrounding the Fed's interest rate policy. This, as an issue that has marked the entire year, could create significant pressure on the overall direction of the economy.