r/investing • u/Mindless_Designer519 • 2d ago

What do you think about Powell's decision?

Hey everyone,
I wanted to hear your thoughts on Powell's recent decision not to cut interest rates.

  • Do you think it's the right move considering the current economic conditions?
  • How do you see this impacting the markets in the short and medium term?
  • Are you expecting a rate cut later this year, or is the Fed likely to hold for longer?

Curious to hear your takes—especially from those following macro trends or managing portfolios based on rate expectations.

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u/RedArse1 2d ago

The markets will be impacted by what they expected the Fed to do, vs. what it really does. I think the rate change pause is in response to an unprecedented number of unknowns in the American market. This is not as beneficial to the market as raising when expected to, or lowering when expected to, but it's not particularly detrimental. It is, however, a sign that he probably doesn't know which direction rates are going to move next, and the decision maker may be the market itself... Which is not looking great for us as investors, nor those wanting loans.