The Fed decides to Hold rates (E10)

The Federal Reserve has chosen to temporarily halt its pursuit of raising interest rates; however, it asserts its willingness to implement rate hikes if deemed essential, a stance it intends to uphold until the culmination of the year. With the impending Federal Reserve meeting scheduled for next month, a pertinent inquiry arises: will they persist in augmenting rates, cease such actions, or even contemplate a reduction? It is worth noting that historical patterns often reveal a “Santa Claus rally” in the financial markets towards the close of the year. This phenomenon could potentially influence the Federal Reserve’s decision-making process, potentially leading to a pause until the onset of the following year. It is imperative to underscore that Federal Reserve Chair Jerome Powell has underscored the pivotal role of economic indicators in shaping these decisions.