Fed Signals Potential Pause in Rate Cuts as Markets React

Fed Chair hints at slowing rate reductions, impacting market expectations and bond yields.

Equity markets experienced a downturn following hawkish comments from Fed Chair Jerome Powell, suggesting a potential pause in rate cuts.
The Nasdaq fell 2.24% on Friday, capping a week of losses across major indexes, including a significant drop in biotech stocks.
Fed Chair Powell indicated that inflation is nearing the Fed's 2% target but emphasized the need for caution in lowering rates further.
Concerns about rising bond yields were heightened by Trump's election victory, which is seen as pro-business and potentially inflationary.
Retail sales showed unexpected strength, but the growth rate outpaces consumer income, leading to increased consumer debt.