Insight

Markets Are Rejecting the Fed’s Monetary Policy

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Algo Research Team

Market | Nov 14, 2024 | Views: 840

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Key Summary:

  • Market risk-off since first rate cut
  • Monetary policy error is likely
  • Inflation could restart in 2025

Back in August and September, anticipation of the first Fed rate cut fueled optimism across asset classes. However, it turned out to be a “sell-on-news” event, as markets shifted to risk-off afterwards.


We have successfully expected this sell-off in September (read here: Bearish thesis has played out) and now the Indonesian markets are back to August level as well, erasing all the gains from interest rate cut.

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