Turbulent Markets: Uncertain Paths Amid Fed's Rate Decisions
Global stocks face their largest drop in weeks, influenced by the Fed's decision to slow interest rate cuts due to inflation concerns and economic growth. Political uncertainties and potential policy shifts under the new administration add to investor caution, impacting market indices and currency values.

Global stocks experienced significant volatility this week, recording their largest drop in two months as the U.S. Federal Reserve signaled a slowdown in interest rate cuts. The Fed, responding to ongoing economic growth and inflation above its 2% target, opted for a more measured pace despite previous commitments to rate reduction.
U.S. stock indices, including the Dow Jones and S&P 500, saw declines amid increasing uncertainties surrounding the economic policies of President-elect Donald Trump. Investors expressed concerns over potential inflation from expected tariffs, tax cuts, and deregulation promised by the incoming administration, which could reshape the fiscal landscape.
Simultaneously, the U.S. dollar showed mixed reactions against global currencies, with bond yields responding to Fed signals and broader economic forecasts. Market participants continue to assess how these economic and political developments will impact future rate cuts and global financial stability.
(With inputs from agencies.)
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