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Crossmark Global Investments CEO and CIO Bob Doll discusses the odds of a December rate cut by the Fed and how the market is navigating fears of A.I. on ‘Maria Bartiromo’s Wall Street.’
The Federal Reserve is currently divided over whether to cut interest rates in December. Typically, the policy committee reaches a consensus with minimal dissent, but the current situation is unusual. A potential outcome of the vote could lead to an ironic result, highlighting the division within the Fed.
Federal Reserve official Logan stated that he expects the Fed's balance sheet to resume growth soon, and the Fed will need to offset the tailwinds from financial conditions. Maintaining interest rates will allow the Fed to assess the tightening situation. (Jinshi)
Fed Chair Powell's recent comments have led to a hawkish repricing in interest rate expectations, negatively impacting the stock market. The Fed faces a challenge in balancing rate cuts to avoid a recession. The December meeting may signal a dovish hold with increased projected rate cuts in 2026, potentially limiting downside risk and leading to a market rebound.
DWS Chief U.S. Economist Christian Scherrmann stated that U.S. job growth rebounded significantly in September, with an addition of 119,000 positions, mainly concentrated in healthcare, food services and bars, and social assistance sectors. The unemployment rate slightly rose to 4.4%, and the average hourly wage increased by 0.2%. Due to a lack of immediate data, the Federal Reserve is expected to maintain interest rates unchanged in December, but it is anticipated that the policy rate will be lowered to a neutral level next year