December S&P 500 E-Mini futures (ESZ24) are down -0.10%, and December Nasdaq 100 E-Mini futures (NQZ24) are down -0.13% this morning as investors took a breather at the end of an eventful week that saw Donald Trump reclaim the U.S. presidency and the Federal Reserve cut rates.
As widely expected, the Federal Reserve cut its benchmark interest rate by a quarter percentage point yesterday. The Federal Open Market Committee voted unanimously to reduce the federal funds rate to a range of 4.50% to 4.75%, marking its second consecutive rate cut. Fed officials adjusted their language to note that “labor market conditions have generally eased” and reiterated that “the unemployment rate has moved up but remains low.” In addition, the statement eliminated the reference to “further” inflation progress, instead noting that inflation “has made progress toward the committee’s 2% objective but remains somewhat elevated.” “This further recalibration of our policy stance will help maintain the strength of the economy and the labor market and will continue to enable further progress on inflation as we move toward a more neutral stance over time,” Fed Chair Jerome Powell said in a press conference. The Fed Chair noted that recent indicators suggest the U.S. economy continues to expand solidly, adding that he does not rule “out or in” a rate cut in December. Powell also stated that the U.S. presidential election will have “no effects” on the Fed’s policy decisions in the near term.
