Daily Market Update
with JJ Kinahan

5 min read

Elephant in Room: Fed Ponders Hike, But Tariffs Remain Key Market Theme

(Tuesday Market Open) Powell and company are back in town, and face a critical decision tomorrow: Should they raise interest rates a fourth time this year or hold off for a bit as overseas economies show signs of struggle and the stock market keeps plunging?

While there’s a lot resting on the Fed move and whatever Fed Chair Jerome Powell says afterward at his press conference, at the end of the day, no matter what he does, the ping pong of tariffs doesn’t go away. The overlying theme is still tariffs. Companies are still trying to figure out what the rules of the game might be, and that’s affecting their desire and ability to spend.

With December off to the month’s worst start in 38 years, there seems to be more hanging on this gathering than any other recently. Some economists have urged the Fed to delay another hike, but arguably that might make things even worse for the markets. People could interpret that as a sign of the Fed being increasingly worried about the economy. 

Futures trading puts chances of a hike at 71% as of early Tuesday, which might indicate a likely raise perhaps accompanied by dovish “w

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Daily Market Update

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