Powell's Final FOMC Signals Higher Rates for Longer, Pressure on Stocks
TL;DR Summary
Powell’s last FOMC meeting kept rates at 3.50%–3.75% but showed a record dissent against easing, suggesting no rate cuts in 2026. With the market’s CAPE ratio around 40—the highest since 2000—stocks face downside risk if borrowing costs stay high and easing is off the table. The development marks a potentially dubious turning point for Wall Street as valuations remain historically stretched.
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