Fed Chairman Powell has begun to change the rules. As a result, all companies' s

Fed Chairman Powell has begun to change the rules. As a result, all companies' stock prices ... have to evaluate differently. 🤯 Even expectations of a September rate cut disappear... May start to cut for the first time in March 2025

The Fed's beige book was released at 3 a.m. Korean time today. The beige book is an economic trend report in which 12 U.S. Federal Reserve banks (Fed) have contacted banks, companies, and experts in each region to collect recent economic trends, and will be released about two weeks before the FOMC meeting.

In the beige book released this time, the Fed diagnosed that the U.S. economy has continued to expand slightly overall since the end of February. This is because 10 of the 12 regions under the Fed's control showed light or somewhat moderate growth.

For your information, the Fed diagnosed in February that only eight regions continued to grow slightly or somewhat modestly. This time, two more regions were added.

In response, Reuters said, "It suggests that the recent trend that made it impossible for the Fed to cut interest rates continues," while Bank of America predicted, "There is a real risk that the U.S. Fed will not cut rates until March 2025."

Markets are already lowering expectations of a September rate cut. As the Fed determines its monetary policy direction based on the beige book, it is not expected to see any news of a reversal of market mood at the FOMC in two weeks.

#BeigeBook #FOMC