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Powell's Shock Move: Will Interest Rates Fall? Stocks Soar! | JQJO

Powell's Shock Move: Will Interest Rates Fall?  Stocks Soar!

Powell's Shock Move: Will Interest Rates Fall? Stocks Soar!

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US inflation, peaking at 9.1% in June 2022, prompted the Federal Reserve to prioritize controlling price increases through high interest rates. Initially, this seemed to achieve a 'soft landing,' avoiding recession. However, factors like tariffs and geopolitical shifts have cooled the labor market. Fed Chair Jerome Powell now suggests a potential policy shift towards supporting employment, possibly by lowering interest rates. This hint caused a surge in US stocks and a fall in Treasury yields, highlighting the Fed's significant influence on the US economy.

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