Earlier in December, stocks took a 3 percent dip one day because the Federal Reserve implied that two rather than four interest rate reductions would be penciled in for the upcoming year. This followed ten consecutive days of loss on the Dow, mostly through reshuffling between the Dow and Nasdaq. The Fed did reduce rates as widely expected, but the implied Fed hawkishness suggested more headwinds for the market to some, and the selloff accelerated in the afternoon. But the market rebounded in the days before Christmas and things look positive moving forward into 2025 The Federal Reserve's more hawkish strategy is based on the idea that inflation is still an issue, and there are enough positive market signs to carry the market upward, even if the reduced pace of interest rate lowering puts some damper on things. Yes, the signs are good. Indeed, market sentiment has been positive, with the deregulation implied in Trump's policies, good consumer demand, and a year with momentum g...
