President-elect Donald Trump's post-election stock market rally took a hit this week as Federal Reserve Chair Jerome Powell delivered a reality check to investors. The Fed announced that inflation would remain higher than expected next year and adjusted its rate cut projections for 2025, causing stocks to plummet. The S&P 500 fell 3%, and the Dow experienced its longest losing streak since 1974, shedding over 1,100 points.
The market's reaction underscored the Fed's influence over market dynamics, overshadowing Trump's pro-business promises. The Fed's revised forecasts, particularly the reduced rate cut expectations for 2025, rattled investors and erased much of the post-election market gains.
