2025-12-31 13:22:38

U.S. stocks closed slightly lower on Tuesday, marking the third consecutive trading day of declines for the S&P 500 index. Specifically, the Dow Jones Industrial Average fell 94.87 points (0.20%) to 48,367.06; the Nasdaq dropped 55.27 points (0.24%) to 23,419.08; and the S&P 500 declined 9.50 points (0.14%) to 6,896.24.

The market's focus shifted to the Federal Reserve's policy stance. The latest minutes from the December monetary policy meeting show that officials remain divided on the future policy direction. Most officials believe that once inflation returns to expectations, further rate cuts would be a reasonable choice. However, some officials expressed reservations, explicitly stating that interest rates should remain unchanged "for a period of time."

The minutes from the FOMC meeting on December 9-10 again reflect this deep internal disagreement. The minutes state: "Some officials supporting the rate cut noted that this decision was made after weighing multiple factors, and they could have supported holding rates steady." This clearly indicates that the decision-making process was not easy.

Looking back at December's actions, officials voted 9-3 to cut the benchmark interest rate by 25 basis points for the third consecutive time, bringing the current range to 3.5%-3.75%. However, the statement released after this meeting included subtle wording adjustments, hinting at differing views among officials regarding the pace of future policy moves.

It is worth noting that this Thursday coincides with the New Year's Day holiday, and the U.S. stock market will be closed. Investors might take this opportunity to digest the latest policy signals.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

7 Likes

Reward
7
6
Repost
Share

Comment

0/400

GateUser-afe07a92

· 9h ago

The Fed folks are fighting among themselves again, reluctantly cutting interest rates 9:3. Now what... three days of consecutive declines, what more can I say?

View OriginalReply0

ser_we_are_early

· 9h ago

The Fed folks really can't come up with new tricks. Is a 9-3 vote not enough to explain the issue? With such significant disagreements within the Federal Reserve, no wonder the market keeps falling.

View OriginalReply0

BearMarketHustler

· 9h ago

The Federal Reserve is having internal conflicts. Even with a 9:3 vote, they are still so indecisive. There’s definitely no chance of a rate cut later on. Are they still hesitating with a 9:3 vote? These officials are really competitive, no wonder the stock market has fallen for three consecutive days. Wait, they could have kept it unchanged? That means this rate cut is really reluctant... Maybe they will raise interest rates next year, haha. The third consecutive rate cut looks the same, it feels like the US stock market will start to fluctuate after the New Year. Looking at the tone adjustment in the minutes, the Fed is about to turn hawkish. I bet the next meeting will be a pause. Was this decision process not easy? In other words, there were major disagreements. Why hasn't the market reacted yet?

View OriginalReply0

gas_fee_therapy

· 9h ago

The Federal Reserve is really playing Tai Chi, cutting rates while hesitating and stalling Hawkish and dovish factions are pulling in opposite directions, how are retail investors supposed to play? Three days of continuous decline, still debating whether to cut or not, my wallet is hurting Officials are so conflicted at 9 to 3, indicating they are truly lacking confidence. This market trend still needs to be watched The New Year's holiday is just right, giving me time to recover and re-enter the market The Federal Reserve is again playing psychological games, causing the market to be whipped back and forth The rate cut signals are so cautious, it might really be time to hold steady moving forward The minutes look like they’re shifting blame; no one wants to take responsibility for this pot The 3.5 to 3.75 range will probably be stuck here, don’t overthink it

View OriginalReply0

ThesisInvestor

· 9h ago

The Fed folks are really stubborn—cutting rates but still wanting to hold steady. Why can't they just give a clear signal... The market has been pretty tough these past couple of days, with three consecutive declines, truly.

View OriginalReply0

AirdropBuffet

· 9h ago

Powell and his team are really a mess, arguing over 9 versus 3... No wonder the US stocks have fallen three days in a row. --- Cutting rates again, still stuck in that dilemma? Instead of guessing, better wait for the post-New Year’s operations. --- This 3.5%-3.75% range has been holding for so long, I think it will stay there for a while. --- What is the market betting on? Instead of reading the minutes, it’s better to watch the Fed’s tone; in the end, it all comes down to a phone call. --- Three days of consecutive declines are nothing; compared to internal Fed struggles, this is insignificant. The real drama is yet to come. --- So, is it a rate cut or not? These people are really efficient.

View OriginalReply0