Fed statement: Fed cuts rates 25bps to 4.75%. S&P500 pushes through 6,000 on Powell.... Q: Trump might ask you to leave. Would you? A: Powell: No....... Q: Are you legally required to leave? A: Powell: No....... Powell: "gained confidence that we are heading towards 2% inflation"... Chart: S&P500 (+0.8%) and (inverted) 10yr yields (-11.6bps rally) Overall, the Fed seems to be adjusting to a potentially more uncertain economic environment, with a cautious yet flexible approach to monetary policy adjustments Today's statement appears slightly more cautious than September's. While both statements maintain economic activity is expanding at a "solid pace," the September statement showed more explicit confidence about inflation progress. The shift to a 25bps cut, along with the unified vote, suggests the FOMC is taking a more measured approach to easing, wanting to observe the effects of the previous larger cut. -------------------------------- Comparing today's and September's Statements: Labor Market Conditions: today's and September's statements acknowledge a slight easing in the labor market, with a slight uptick in unemployment, though it remains low. However, November's language about "labor market conditions [having] generally eased" contrasts with the September statements note that "job gains have slowed," signaling a more comprehensive shift in labor market dynamics. Inflation: Both statements recognize progress toward the 2% inflation target, but the September statement reflects "greater confidence" in inflation sustainably moving toward this target, suggesting that by November, there was some caution about overconfidence in inflation trends. But in Q&A today Powell: "gained confidence that we are heading towards 2% inflation"... Committee Voting: Michelle W. Bowman preferring a smaller rate cut dissented in September, whereas in November, all members voted unanimously. ----------------------------------- Federal Open Market Committee Nov. 7 Statement: Recent indicators suggest that economic activity has continued to expand at a solid pace. Since earlier in the year, labor market conditions have generally eased, and the unemployment rate has moved up but remains low. Inflation has made progress toward the Committees 2 percent objective but remains somewhat elevated. The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. The Committee judges that the risks to achieving its employment and inflation goals are roughly in balance. The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate. In support of its goals, the Committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 4-1/2 to 4-3/4 percent. In considering additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgagebacked securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective. In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committees goals. The Committees assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments. Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Thomas I. Barkin; Michael S. Barr; Raphael W. Bostic; Michelle W. Bowman; Lisa D. Cook; Mary C. Daly; Beth M. Hammack; Philip N. Jefferson; Adriana D. Kugler; and Christopher J. Waller. https://t.co/p3kQgfit0A https://t.co/9WcbtPLj62.