Part 8/10:
Markets reacted sharply; the Dow Jones Industrial Average plummeted immediately after Powell’s remarks, reflecting investor anxiety. The market's sensitivity to the Fed’s guidance underscores how much Wall Street prices in expectations about interest rates, especially as they influence borrowing costs, corporate investments, and technological sectors like artificial intelligence.
Powell clarified that although many participants favored a rate cut, the decision hadn’t been finalized for December, leaving open the possibility of further adjustments. The overarching theme remains one of caution: policymakers are balancing inflation pressures against signs of economic slowdown, with the future course still an open question.